Policy makers must safeguard creators’ rights and implement transparency rules.
Paris – 4th December 2024: The International Confederation of Societies of Authors and Composers (CISAC) has released the first global study measuring the economic impact of Generative AI in the music and audiovisual sectors. Over more than 100 pages, the report details how Gen AI will enrich tech companies while substantially jeopardizing the income of human creators in the next five years.
The study concludes that with an unchanged regulatory framework, creators will suffer losses on two fronts:
- The loss of revenues due to the unauthorized and unremunerated use of their works by Gen AI models
- The replacement of their traditional revenue streams due to the substitution effect of Gen AI outputs that compete against human-made work
It is estimated that by 2028, 24% of music creator revenues will be at risk as the market for Gen AI music and audiovisual content rises to €64bn from €3bn today.
Music streaming and library markets will be especially strongly impacted. In five years, Gen AI music is projected to account for approximately 20% of traditional music streaming platforms’ revenues, and around 60% of music libraries’ revenues.
