The Business Bytes
Paris, December 5, 2024 (TBB Bureau): The world’s first comprehensive study on the economic impact of generative AI in the music and audiovisual industries has unveiled alarming insights about the future of human creators. Commissioned by the International Confederation of Societies of Authors and Composers (CISAC) and conducted by PMP Strategy, the report warns that generative AI could substantially enrich tech companies while jeopardizing the livelihoods of millions of creators worldwide within the next five years.
The study projects dramatic growth in revenues for generative AI providers, driven by the unlicensed reproduction of creators’ works, but this surge comes at a significant cost to creators. Music and audiovisual creators are estimated to face a combined revenue loss of €22 billion by 2028, with €10 billion at risk in the music sector and €12 billion in the audiovisual domain. Meanwhile, the generative AI market for music and audiovisual content is expected to expand from €3 billion today to €64 billion by 2028. Within the music sector, generative AI is anticipated to contribute 20% of revenues on traditional streaming platforms and 60% in music libraries. In the audiovisual industry, creators such as translators and adaptors for dubbing and subtitling face the greatest challenges, with 56% of their revenue at risk. Additionally, screenwriters and directors could experience revenue losses of 15-20%, highlighting the far-reaching impacts of this market transformation.
The report highlights a critical gap in the current regulatory framework, which enables generative AI models to exploit copyrighted works without adequate compensation to creators. This unchecked growth threatens to replace traditional revenue streams with AI-generated outputs, further exacerbating creators’ economic vulnerabilities.
CISAC Director General Gadi Oron emphasized, “Policy makers must act urgently to safeguard human creators, culture, and creativity. They must ensure transparency from AI services and enforce creators’ rights, enabling a fair and ethical AI environment.”
Rakesh Nigam, CEO of the Indian Performing Rights Society (IPRS), underscored the dual nature of AI as both an opportunity and a threat: “While AI offers immense possibilities for innovation, it also poses significant challenges to the livelihoods of creators. Robust policies are essential to ensure fair compensation and protect the value of human creativity.”
CISAC President Björn Ulvaeus called on lawmakers to prioritize creators in legislative debates: “AI has the power to unlock new opportunities, but poorly regulated generative AI can devastate creators’ careers. Policy decisions made now will shape the future of human creativity and culture.”
The report serves as a clarion call for policy makers, industry stakeholders, and creators to collaboratively address the challenges posed by generative AI. Ethical policies that put creators at the center of the AI landscape are essential to balance innovation with fairness.
Marcelo Castello Branco, CISAC Board Chair, stressed the importance of protecting creators: “Our sector has always adapted to new technologies, but generative AI disrupts the very core of the creative process. We are committed to safeguarding the rights and livelihoods of our members.”
This groundbreaking study combines qualitative and quantitative research to provide the first global economic impact assessment of generative AI on creators. It draws from market data, case studies, and expert interviews with collective management organizations, creators, tech companies, publishers, and public institutions. Its findings are intended to inform remuneration schemes and guide legislative action to protect human creativity.
