The Changing Landscape of the Music Industry and the Role of Artificial Intelligence

Ulrich Fischer

Hatched by Ulrich Fischer

Mar 28, 2024

4 min read


The Changing Landscape of the Music Industry and the Role of Artificial Intelligence

The music industry has undergone significant transformations in recent years, with the rise of streaming platforms and the increasing influence of technology. In this article, we will explore two key developments that are shaping the future of the music industry: Spotify's expansion into a comprehensive music and services platform, and the role of artificial intelligence (AI) in content generation and analysis.

Spotify's Evolution: From Music Streaming to a Marketplace

Spotify, one of the leading music streaming platforms, recently announced updates to its application that aim to transform it into a global music and services marketplace. These updates primarily target artists, providing them with the ability to upload short promotional videos for their songs, albums, concerts, and establish a "community" connection with Spotify users. Additionally, Spotify plans to sell goodies and concert tickets online, further expanding its offerings.

This move by Spotify can be seen as a response to the growing popularity of TikTok, which has emerged as a vital promotional tool for artists. By evolving into a super-app that caters to artists' diverse needs, Spotify aims to counter TikTok's influence and generate new revenue streams. However, it is worth noting that these new services currently come without any direct compensation for the artists. Instead, they indirectly benefit from the activities of major record labels, which may not receive a share of the revenue generated by these services.

Believe's Model and the Potential for Artists' Revenue

Believe, a digital music distribution company, has successfully positioned itself as an alternative to major record labels by offering artists a range of services tailored to the digital landscape. Spotify's transformation into a marketplace follows a similar model, providing artists with access to a community of half a billion users and enabling them to offer more than just music content subject to per-stream remuneration. This shift holds the potential for artists to explore new revenue streams and addresses their dissatisfaction with the royalty payments from major labels.

The Role of Artificial Intelligence in Content Generation and Analysis

While the music industry adapts to new market dynamics, the role of artificial intelligence in content generation and analysis cannot be overlooked. However, there are concerns regarding the limitations of AI models, such as ChatGPT, which rely solely on statistical calculations to generate text. Some experts have likened these models to "stochastic parrots" as they generate words without a deep understanding of their meaning or nuances.

The generation of suitable content requires more than statistical calculations; it necessitates an understanding of context and the ability to cater to user demands effectively. AI models like ChatGPT may serve as a temporary solution to mitigate the challenges faced by users, but they do not address the root issues. Simply put, we do not need more content; we need better analysis and understanding of the content that already exists.

Actionable Advice for Artists and Industry Professionals

  • 1. Embrace the Potential of Spotify's Marketplace: Artists should leverage Spotify's evolving platform to connect with their audience on a deeper level. By utilizing the new features, such as promotional videos and community-building tools, artists can establish a stronger presence and explore alternative revenue streams beyond traditional music sales.
  • 2. Seek AI Solutions with Contextual Understanding: As AI continues to play a significant role in content generation and analysis, it is crucial for industry professionals to focus on AI models that go beyond statistical calculations. Look for AI tools that can comprehend context and deliver more meaningful insights, enabling better decision-making and content creation.
  • 3. Collaborate with Digital Distribution Companies: Artists can benefit from partnering with digital distribution companies like Believe, which offer a range of services tailored to the digital landscape. By diversifying their approach and tapping into new revenue streams, artists can reduce their reliance on traditional record labels and gain more control over their careers.


The music industry is undergoing rapid changes, with Spotify's transformation into a marketplace and the increasing influence of artificial intelligence. Artists and industry professionals must adapt to these developments by embracing the opportunities presented, seeking AI solutions with contextual understanding, and exploring partnerships with digital distribution companies. By doing so, they can navigate the evolving landscape and secure a sustainable future in the music industry.

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