Will Content Deals Kill the Sync Business?

An image with a tombstone rising from a bunch of discarded instruments that reads, "RIP Sync Composer" and has 1926-2025 on the tombstone.

Introduction

Most sync music composers I know are working with libraries that have strict, no generative AI policies. This is to protect against infringement, and AI is just one of the ways libraries protect themselves. This has put a lot of composers into the mindset that they don’t need to worry about generative AI for music and probably shouldn’t use it, as it might damage their relationships and personal brand. There’s plenty of evidence, though, that this is changing, and changing quickly. Today, the latest in a high-profile series of events has led me to believe that the foundational rules governing content creation, licensing, and compensation could be redrawn far sooner, and more dramatically, than anticipated. For the sync music business, this is a potentially a major market shift.

Music Licensing Talks in the News

The story breaking today is that there are reportedly licensing talks between the major record labels (Universal Music Group, Warner Music Group, and Sony Music Entertainment) and leading AI music generation platforms Suno and Udio. These discussions come amidst ongoing copyright infringement lawsuits where labels allege these AI companies trained their models on copyrighted music without permission. Suno and Udio say it’s fair use as a defense, but the fact that these licensing deals could include equity stakes makes me think this could resolve quickly and catch a lot of composers off guard and ill-prepared for the change.

We are already seeing this in the news industry in the multi-year AI licensing deal between The New York Times and Amazon. This agreement allows Amazon to use NYT content, including material from The Athletic and NYT Cooking, to train its AI models and for features in products like Alexa. This comes after The Times sued Microsoft and OpenAI for using its content for training. The Times views this deal as consistent with its principle that quality journalism is valuable and should be compensated. Similar deals have been struck by other major publishers and provide a potential framework for the music industry.

Ominous Signs from the U. S. Copyright Office

But there is another aspect of this convergence. The regulatory landscape surrounding AI and copyright is also in flux. Shortly after the US Copyright Office released a report detailing its analysis of AI and copyright issues, including training data and fair use, its head, Shira Perlmutter, was terminated by the White House. The report itself leaned towards protecting creators, suggesting that unlicensed training on copyrighted works often constitutes infringement and may not be covered by fair use, particularly when the AI output competes with the original work. The dismissal of such a high-ranking official following the release of a report relevant to the ongoing AI copyright debate highlights how rapidly and contentiously the legal and political environment around AI and creative works is evolving. Imagine if the Copyright Office suddenly decides AI training IS fair use?

For musicians and composers operating in the sync music space, this confluence of events is alarming. Our market obviously relies on licensing for usage and is particularly vulnerable to disruption by AI-generated music. If the world’s largest music rights holders begin licensing their catalogs for AI training and use, the competitive landscape could fundamentally transform. Will sync music composing be transformed into writing really good prompts?

What Can You Do?

The message for sync artists, particularly those advised by some traditional libraries to steer clear of generative AI, is becoming increasingly urgent. While ethical considerations around AI training data and the current limitations of the technology are valid concerns, the market is demonstrating a clear trajectory towards AI integration through commercial agreements and policy shifts. The possibility that the “game could change in an instant,” with major players establishing new norms for AI music licensing is no longer theoretical. Dismissing the need to understand generative AI tools is a career-limiting strategy. Now is the time to understand and engage with these technologies, exploring how they can be used creatively, efficiently, and ethically within your own process, because the market you rely on may soon look drastically different.

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Note: The news stories primarily referenced are The New York Times’ first generative AI deal is with Amazon published by The Verge and Universal, Warner, and Sony in talks to license AI music generators Suno and Udio published by Music Business Worldwide. Information regarding the firing of Shira Perlmutter and the Copyright Office report is drawn from multiple sources, including Top Music Attorney, Unlimited Supply Podcast, and Music Ally. Some of these are perhaps non-traditional news sources but no less deserving of attention.

I used NotebookLM to help analyze content and assemble proposed talking points then I edited and rewrote sections to create the final draft.

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