Reports: AI

AI is transforming culture, entertainment, business, and society at a rate unprecedented in the digital era. Unlike previous tech, AI is evolving at the speed of computing, not the human brain. Delivering as quickly as it promises, AI is breaking the mould.

AI chatbots are intersecting our entertainment lives as the tech majors transform consumer devices into digital companions. Such moves are building upon the foundations laid by smart speakers and OpenAI’s ChatGPT to elevate chatbot engagement towards the mainstream.

This music creator tools forecasts report acts as a companion piece to MIDiA’s report “State of music creator economy: AI’s growing reach ” . This report provides analysis, market sizing, and forecasts for users and revenues for music creator tools revenues across the following categories: Software and services DAWs Music software (plug-ins, VSTs, generative AI, stem extraction, etc.

Still recovering from post-pandemic aftershocks, the music creator economy now faces unprecedented disruption from generative AI. More people are creating than ever before (both as creators and consumers) and sounds, services, and software revenue is growing well (the latter boosted by generative AI).

The global importance of video for podcasting extends into the unique market dynamics of the US, UK, France, Mexico, and Japan. Not only does this justify Spotify’s strategic video push, but it also indicates a need for other platforms to follow suit.

As with any emerging technology, recent advancements in artificial intelligence (AI) have set in motion a flurry of excitement and investment, as well as fear and litigation. In this environment, it is crucial to parse what is hype and what is reality.

While North America and Europe are on a path towards authenticity (due to an authenticity crisis), with such trends as #definluencing and #dupes loudly and quickly gaining traction, social media users in Asia Pacific (APAC) have a growing focus on artificial “virtual” influencers (VI’s).

Unlike most new technology hype cycles, the impact that artificial intelligence (AI) has on the world is already surpassing expectations. Within the music industry, AI will largely be an enabler and accelerant of already-existing trends and market shifts: the growth of self-releasing artists, the consumerisation of music-making, and the resulting oversaturation and hyper-fragmentation of the market.

AI has already hit entertainment at the industry level – and the impacts on audience culture will not be far behind. A variety of AI tools are now readily available on ‘fremium’ tiers at a consumer level. Companies may be looking towards what the new world of web 3.

2023 has been jump-started by rapid progression in the adoption of artificial intelligence (AI). From the launch of ChatGPT to AI-powered DJs, this technology is revolutionising common practices, impacting consumers, creators, and industry leaders alike.

Games, sports, music, video, audio, and social content all compete not only for consumers’ attention (and money), but also their fandom. However, the oversaturation of content is devaluing entertainment itself, by overly commodifying it. Entertainment businesses and content providers will need to rethink how to generate better value for audiences, especially if they want to make true fans of those audiences – especially in an environment of recession (both in the global economy and consumer attention).

The creator tools marketplace is creating a revolution in the culture and business of music. The third decade of the millennium represents the opening of a new chapter for the music business, with the means of production and distribution fully democratised.