Generative artificial intelligence (AI) is rapidly transforming the creative sector and bringing technology companies unprecedented wealth. However, for authors, composers, directors and other creative professionals, this development primarily means a significant decline in income. This is evident from a recent study by PMP Strategy, commissioned by CISAC, the international confederation of copyright organizations. Sabam, the Belgian copyright organization, is calling on policymakers to take urgent action to achieve a fairer distribution of income.
Shocking figures on income loss
The figures from the study are alarming. By 2028, creative makers worldwide are expected to lose 24% of their income from music rights and 21% from audiovisual rights. This represents a total loss of €22 billion, of which €10 billion is in the music sector and €12 billion in the audiovisual sector. Meanwhile, the market for AI-generated music and audiovisual content is growing explosively, from €3 billion now to €64 billion by 2028. This growth comes directly at the expense of makers' traditional income sources, as AI-generated content is preferred in distribution channels such as streaming platforms.
Unfair competition
AI services are benefiting enormously from this shift. Their estimated revenues from the music and audiovisual sector are rising from €0.3 billion in 2023 to €9 billion by 2028. However, much of this revenue is generated through unauthorized use of copyrighted work. As a result, creative makers see their economic property taken away by technology companies that contribute nothing to creation themselves.
"Without regulation, authors lose on two fronts," the report states. "On the one hand, through unauthorized use of their creative work by AI models, on the other hand, through displacement of traditional income sources by AI-generated output."
Impact on specific professions
The impact of AI extends beyond music authors and directors alone. Translators, subtitle writers and voice actors are under considerable pressure, with expected income losses of 56%. Directors and screenwriters are also hard hit, with losses of 15% and 20% respectively. This shows that the threat of AI is much broader than just the music and audiovisual sectors.
Sabam sounds the alarm
Sabam points to the broader trend of a digitalizing cultural economy, in which the position of creative makers continues to weaken. "The income of a Belgian music author from streaming services and physical sales is on average only €115 per month," explains Steven De Keyser, CEO of Sabam. "This amount has remained unchanged since 2012, despite market growth of nearly 30%."
Additionally, Sabam emphasizes how other factors, such as the discontinuation of traditional television services and the buyout of rights by streaming platforms, are further worsening the situation. Makers receive insufficient compensation for the growing use of their work on platforms such as Spotify and VRT Max.
Call to action
Sabam is calling on policymakers to prioritize the interests of authors when developing legislation. Without their creative contribution, there is no future for the cultural economy. This sentiment is shared by Björn Ulvaeus, chairman of CISAC and co-founder of ABBA. He emphasizes that AI offers impressive opportunities, but also carries great risks if regulation is lacking.
"It is essential that we develop regulations that protect the rights of creators," says Ulvaeus. "This ensures an AI environment that safeguards human creativity and culture."
Conclusion
The PMP Strategy report emphasizes that urgent action is needed to protect the position of creative makers in a rapidly changing digital market. Sabam joins in this call and urges for regulations that strengthen the rights of authors and guarantee fair distribution of income. Only in this way can the creative sector continue to flourish in an era of technological disruption.
View the full PMP Strategy study
here and discover how AI is transforming the music and audiovisual economy.
