Negotiation with Record Labels for YouTube 'AI Music Generator'

YouTube is reportedly in talks with record labels to create an artificial intelligence (AI) music generator, according to major foreign media on the 26th (local time).

According to three sources familiar with the matter, YouTube has recently been negotiating with major record labels such as Sony, Warner, and Universal to allow the use of music by artists under their labels for training AI software.

[Image source=AP Yonhap News]

However, many artists oppose this, fearing that AI could undermine the value of their work.

An executive from a major record label said, "The industry is considering this. Strictly speaking, the copyright belongs to the label, but we need to think about how to handle it," adding, "We do not want to be seen as Luddites (opponents of new technology)."

Last year, YouTube tested a generative AI tool called 'Dream Tracks' that could create short music clips. However, only 10 artists, including Charlie XCX, Troye Sivan, and John Legend, agreed to participate in the testing phase, making it difficult to secure training data. Sources said YouTube wants dozens of artists to participate to launch a new AI song generator.

YouTube stated, "We have no plans to expand Dream Tracks, but we are discussing other experiments with record labels." Foreign media reported that YouTube’s AI music generator could be integrated into the YouTube Shorts platform.

Generative AI companies like OpenAI have signed licensing agreements with media companies to train large language models (LLMs). Such agreements can involve tens of millions of dollars. However, in the music field, contracts apply individually to artists rather than blanket licenses, making it a different form, according to sources. Foreign media reported that the final amount YouTube will pay to record labels has not yet been decided.

As generative AI is increasingly used in music, major U.S. record labels have recently filed copyright infringement lawsuits against AI startups. On the 24th, the Recording Industry Association of America filed a damages lawsuit against AI startups Suno and Udio.