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Speaker 1: I do want to We've got a little bit of

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music news. This particularly caught my eye, so we have

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we do have a few minutes before we uh before

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we hit the top of the hour, So I wanted

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to talk about this because this well, in a sense

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it reflects or effects. I should say something that I've used.

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This is from Music Businessworldwide dot com artist representatives launch

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say No to Suno campaign Now Suno if you're not familiar,

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it's an app. It's that uses AI. You can actually

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create songs using AI. You just put in some simple prompts,

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tell it what you want, and it will create a

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song for you. Jenny and I it was over a

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year ago now, maybe a year and a half ago,

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the first time we ever used Suno. We did an

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experiment with it, kind of live on the air, just

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to see what would happen. It's very easy to use,

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and it creates some very convincing you know, like you

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wouldn't know just from listening to what it creates that

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it's AI generated necessarily. I've used it quite a bit.

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We've done some really fun things with it. But of

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course we talk about AI a lot on the show,

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and it's an effect on the music industry and how

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artists feel about it, And so now there is this

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say No to Suno campaign. Now, I have no intentions

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of involving myself in any way in the campaign because

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I actually like Suno and it would be hypocritical of

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me to do so, even though my position ultimately is

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and I think everyone knows this because of what I do,

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what I'm involved in, the people I know, et cetera,

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and the various you know, in terms of careers, the

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various things I've done, I will always at the end

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of the day, I will always always advocate on behalf

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of artists. That's what I care about the most. But

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that doesn't mean I won't use an AI app like

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Suno to create a fun, silly song, because I do

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use it for that quite a bit. So. Artists representatives, though,

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have launched the say No to Suno campaign, saying AI

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slop dilutes the royalty pools of legitimate artists from whose

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music this slop is derived. So let's take a look

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at this because again, and who knows, who knows? Maybe

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looking at this article, maybe there's information in here that

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will change my mind and make me decide to join

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the say No to Suno campaign. I doubt it, but

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let's see so it says here again. This is from

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Music Businessworldwide dot com. A coalition of artist representatives has

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published an open letter calling on the music community to

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reject AI music generator Suno. In an open letter titled

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say No to Suno, the artist reps described the company

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as a brazen smash and grab platform, accusing it of

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using unauthorized AI platform machinery trained on human artists. Work

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published Monday, the twenty third, So this just happened this

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past week on the Music Technology Policy Blog. The letter

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was signed by figures including Ray Gubitz, executive director of

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the Music Artists Coalition, Helene Lindvall, songwriter and president of

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the European Composer and Songwriter Alliance, and Chris Castle of

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the Artist Rights Institute. Other signatories included artist David C. Lowry,

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artist and Artist Rights Alliance board member Tift Merritt, Blake Morgan,

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artist producer and president of VCR Music Group, and Abbey North,

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president of North Music Group. The letter arrives as Suno

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continues to face copyright infringement lawsuits from major music companies

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and rights organizations and by the way. By the way

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I tell everybody, I say, if you're enjoying these apps

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like Suno or Udio is another one, a very popular

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AI music generator. If you enjoy these apps and use

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these apps, enjoy them while we have them. Because the

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sharks are circling. Okay, there's all kinds of litigation and

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all kinds of stuff happening to try to get rid

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of these apps permanently or well, probably no getting rid

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of anything permanently, and there's probably no getting rid of

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these apps period. But I'm just saying, don't be shocked

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if one day, all of a sudden, you can't use

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these anymore because they've been shut down. Okay, they've been

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bankrupted by lawsuits, whatever whatever may happen. But right now,

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this is what's going on. Okay, so so uh. The

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RIAA filed suit against both Suno and rival Udo in

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mid twenty twenty four, acting on behalf of all three majors,

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alleging mass infringement of copyright. Udio has since reached settlements

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with both Universal Music Group and Warner Music Group, signing

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licensing agreements with each for a new AI music platform

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expected to launch this year. Interesting WMG Music Group also

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settled separately with Suno in November, but the AI company

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remains locked in legal battles with UMG and Sony Music Entertainment,

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as well as European music rights holders, including Denmark's CODA

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and Germany's Gema Gema. I've not used either of those.

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In fact, I've never used Udio either. The only one

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I've used as Souno Okay, it says here. The open

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letter took aim at the broader concept of AI in

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the music business, arguing that unauthorized generative AI platforms are

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fundamentally different from previous technological disruptions in the music industry.

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And by the way, as we've discussed many times on

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the show, Jenny and I've talked about this, the music

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industry has had many technological disruptions over the years, you know,

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transitioning from vinyl and cassettes to CDs, napster. You know,

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when Napster first came in and file sharing became a thing,

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and all of a sudden, music was free. I was

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working for trans World Entertainment at the time, which owned Fye,

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Which and Strawberries and everything. When I was working for

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them as a store manager in a music store, and

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you know, we saw firsthand what was happening. All of

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a sudden, people aren't buying CDs because they're getting the

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music for free. And then there was all these debates

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about while is file sharing stealing or are you just

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taking advantage of what's available and so forth. We won't

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get into all of that, but anyway, there's been many

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That's probably the single biggest technological disruption that's happened in

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the music industry is the Internet and the ability to

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access music easily and without paying for it. That's probably

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the biggest one, at least leading up to the advent

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of AI. Well, not the advent of it, because AI

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has been with us for a long time, but now

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with these apps, the advent of these apps like Pseudo

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and Udio. Okay, so it says here again, this is

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from Music Business Worldwide dot com. The open letter took

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aim Actually, well, I read this already, but this paragraph

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is worth reading again. The open letter took aim at

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the broader concept of AI and the music business, arguing

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that unauthorized generative AI platforms are fundamentally different from previous

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technological disruptions in the industry. The letter argued that the

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quote hijacking of the world's entire treasure trove of music,

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floods platforms with AI slop, and dilutes the royalty pools

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of legitimate artists from whose music the slop is derived unquote. Right,

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because when you create something using these apps, you're creating

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something that derives its content from all all the content

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that it has learned. You know, we call them large

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learning models. You know, it's taking that from from everything

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else that's available that it's learned, that it's taken in. Now,

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when we talk about whether or not that's okay, my

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argument has always been if I am arguing on the

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side of not having a problem with any of this,

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which I really don't, because you can't hold back technology.

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It never works out. You have to adapt. You can't,

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but you can't stop it. So you have to adapt.

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When I let's say I write a song, and I've

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written songs, I'm a musician. If I write a song,

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anything that I write is somehow informed and influenced and

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therefore is a product of all the music that I've

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ever heard over the course of my life. Right, anything

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that I create is somehow derived from everything that I've heard.

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So how is that different from when a large learning

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model learns music and then creates something from that. Now

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it is different in fundamental ways. But I'm just offering

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as a counter argument to you know, everyone who says,

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oh AI it's got to be stopped, we can't have

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AI generated music and so forth. Well, is it really

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different from when a human creates music? Now it is different. Again,

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I'm just playing Devil's advocate here, but that would be

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my counter argument to that. Well, if I write a

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song as a human being, my song that doesn't come

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out of thin air. My song is based on knowledge

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and information and experience and all of it from my

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own life and all the music that I've ever consumed

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over the course of my life. That's all I'm saying. Okay,

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getting back to the article, The letter arrives amid a

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growing volume of AI generated music hitting streaming platforms. Now,

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this is a problem that we've talked about on the

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show before too. Is all this AI generated music that

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ends up on Spotify, for example, Well Spotify already, I mean,

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I don't remember the numbers. We've talked about it before

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on the show. The amount of music that is up

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that is uploaded to Spotify globally on a daily basis

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is staggering. So then Spotify has to figure out, well

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what to get rid of because now that you factor

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in the ease with which you can create music using

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an app and then just upload it. Now it's it's

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that problem of you know, you only have so much

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storage and you have to keep creating more storage. And

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you know now that because people tend to think of

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it as well, it's just data. It doesn't take up

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any space physically, it's just data. But that's not true.

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Think about your own computer, your own devices, right, you

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only have so much memory. You know, I only have

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so much memory on my cell phone. Now I keep

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my cell phone very clean because I don't want to

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getting clogged up with stuff I don't need. But I

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only have so much memory on it. So it's not

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like it's no different for Spotify, for example, they only

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have so much memory. Now they can create more, but

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there is an expense to and also the larger the

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catalog of music that is available on the platform, doesn't

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it kind of dilute everything that's already there. So this

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is a problem for Spotify. Not that I have any

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great sympathy for Spotify because they don't pay very much,

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but you know, in terms of royalties and so forth.

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But you know, but now they've got a whole new problem.

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This is why a few years ago, before before these

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apps came out, even a few years ago, Spotify was

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struggling with this. They were having to start to go

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through I mean, obviously they have bots that do it,

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but having to go through and delete low quality demo

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recordings that people were just uploading to Spotify, thus diluting

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what's on the platform. People uploading things that probably shouldn't

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have been on there to begin with, because they weren't

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of high enough quality to even be on the platform

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to begin with. So now they've got a whole new problem.

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Let's see. According to getting back to the article, according

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to recent data from Deezer, proximately sixty thousand AI generated

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tracks are being uploaded to the Paris headquartered streaming service

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every day, with synthetic content now accounting for roughly thirty

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nine percent of all music delivered to the platform daily.

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Let's look at that again these numbers. According to recent

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data from Deezer, approximately sixty thousand, sixty thousand AI generated

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tracks every day are being uploaded. These are also revealed

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that up to eighty five percent of all streams on

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AI generated music on its platform were fraudulent in twenty

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twenty five, up from the seventy percent figure it reported

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in the prior year. Those streams are demonetized and removed

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from the royalty pool. By comparison, in streaming fraud across

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Caesers entire catalog accounted for eight percent of all streams

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in twenty twenty five. By the way, I'm not sure.

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I don't know what they mean by fraudulent. That is

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not clear to me. What do they mean by fraudulent?

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I'm not sure. Do they just mean anything that's created

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with an app or what do they mean? While AI

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generated music currently makes up only a small share of

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total streams on Deezer up to three percent, the platform

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maintains that generating fake streams remains the primary purpose for

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uploading such content. The letter also weighted into the ongoing

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industry debate over so called wald gardens in AI music,

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criticizing a recent LinkedIn post by Paul Sinclairs, who Knows

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chief music officer and EXWMG executive, who argued that closed

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AI systems limit how people engage with music Sinclair penned

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a lengthy post Grammy Week LinkedIn memo entitled open Studios,

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not wald Gardens, which took direct aim at the approach

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champion by universals A group in its recent AI licensing agreements.

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UMG was the first major to settle its litigation with

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Suno rival Udio in October twenty twenty five, alongside a

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licensing deal for a new AI platform set to launch

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this year. The concept of a walled garden was introduced

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within that announcement, a model where AI generated music cannot

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be downloaded or distributed outside the platform. Udio disabled downloads,

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with users given a forty eight hour grace period to

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retrieve previously created tracks before the walls went up. By

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the way, this is the first time hearing about this

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the walled garden concept. Around two months after that deal

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was announced, in his annual memo to staff, UMG chairman

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and CEO, Sir Lucian Grange appeared to warn against firms

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quote validating business models that failed to respect artists work

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and creativity and promote the exponential growth of AI slop

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on streaming platforms. So, in other words, he's saying, don't

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do this, don't make deals with AI, you're making a

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deal with the devil. Effectively, you're getting in bed with

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something you don't want. You don't want to encourage this.

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If you start making deals with AI, you're going to

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encourage this. I guess a quick counter argument might be, well,

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if you look back to the previous seismic disruption in

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the music industry, if you go back to Napster, what

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was happening. Well, you know, the industry finally had to

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start making some deals and some compromises and working some

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stuff out. But what he's saying is, don't do that,

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Do not encourage it. Michael Nash, executive vice president and

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chief Digital Officer at UMG, explained the company's position in

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further detail during an appearance on Billboards on the Record

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podcast last month and outline the waldgarden concept in stark terms.

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He said this quote, The concept of a wald garden

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is to set up, through AI, a component of the

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service for deep interaction with the artists and the content,

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but not to create derivatives that you then take off

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of the platform and post all over your socials and

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post on Spotify and Amazon Music and Apple unquote. He

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argued that by doing so you quote effectively use artists

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content and their brand to create derivative derivatives where you're

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going to compete with the artists on other platforms unquote.

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Beyond Sinclair, who joined Suno in twenty twenty five July

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twenty twenty five, the company has made other high profile

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hires from the music industry to support its efforts to

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build relationships with the sector, including former Merlin CEO Jimmy

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Sorry Jeremy Sirata as chief commercial Officer and former Spotify

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executive Sam Berger as Senior Director of Artist Partnerships. In November,

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Suno closed a two hundred and fifty million dollars Series

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C funding round. I don't want to get in all that. Okay,

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never mind, don't care about that part. But that's the

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end of the article anyway. But there you go. So again,

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I will not be joining any such campaign. It would

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be a critical of me to do so. But this

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is all about the say No to Suno campaign.

