UMG boss touts artist-centric models and ethical AI for ‘better industry’

In his annual staff memo sent on 9 January, Grainge highlighted the company’s achievements in 2023 before delving into what he believes the future holds growth-wise and as far as artist campaigns and initiatives around streaming and AI go.

Grainge said that at the start of 2023, a number of critically important issues had to be confronted so that the industry could continue thriving, and, more importantly, for the value of the artists’ work to be respected.

This, he said, called for a new streaming royalty model that would properly reward the artist-fan relationship. “Because artists are at the centre of everything we do, we called it the ‘artist-centric model’. I’m proud to say that in just a matter of months, several global platforms, including the world’s largest music platform, have already adopted artist-centric principles that will transform the way artists are compensated for their work. In the coming months, I believe you will see more platforms adopting these principles. Why? Because it is the right thing to do both for artists and for the wider music ecosystem. As this new model becomes widespread, the impact will be profound: a healthier, more equitable and more vibrant music ecosystem that rewards all artists – be they major, indie or DIY – at all stages of their careers.” 

Grainge also revealed UMG’s next area of focus. “We first focused on a fairer way to allocate the streaming pie among real artists by addressing fraud and other aspects that deprive artists of their just compensation. The next focus of our strategy will be to grow the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products.

“UMG is already in advanced discussions with its platform partners regarding this phase and will have more to announce in the coming months. In addition, we will be building our in-house capabilities through groundbreaking partnerships that will accelerate our artists’ ability to create experiential, commerce and content offerings for their fans. In short, we are creating the blueprint for the labels of the future.”

Regarding AI, Grainge said UMG had shown the industry the way forward when it came to confronting the challenges and opportunities presented by the new technology.

“Early on in 2023, many ‘experts’ viewed AI as a looming threat. Our view? Just as we had done with so many other previous proclamations of doom, we rejected that short-sighted appraisal. On the contrary, we saw AI as presenting opportunities. And then, just as we did with streaming, we went out to turn those opportunities into reality.”

In line with this, Grainge said UMG has launched the Responsible AI initiative whose mission was to lobby for public policies by setting basic rules to protect artists against unethical uses of AI, and to forge private-sector partnerships with AI companies. 

“In the past, new and often disruptive technology was simply released into the world, leaving the music community to develop the model by which artists would be fairly compensated and their rights protected. As for AI, we will continue building opportunities for our artists, while also leading the fight to protect them from unethical uses of this technology. And all around the world, we will continue to prioritise and fight for policies in the service of artistry – not at the expense of it. We also expect to announce more real-world commercial applications for artist-driven, ethical AI,” he said.