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TLDR:
Key Points:
- Michael Smith charged with fraud and conspiracy in AI streaming scheme.
- Streaming ecosystem vulnerable to fraud due to ease of AI-generated songs and bot manipulation.
The federal government’s $10 million AI streaming fraud case involving musician Michael Smith highlights the vulnerabilities of the streaming ecosystem. Smith used AI-generated songs streamed by bots to earn royalties, with at least hundreds of songs listing the CEO of the AI company Boomy as a co-writer. This criminal case serves as a wake-up call to the industry, signaling the need for serious changes in the current subscription streaming business model. The article discusses the challenges of the open nature of streaming platforms, the overwhelming amount of new music uploaded daily, and the impact on both creators and consumers.
Major labels and indies are focused on filtering professional music from amateur creations, but the streaming business is broken in various ways. Services prioritize mainstream and popular artists, neglecting less popular genres and artists. The author suggests changes such as limiting uploads, revising the royalty system, and investing in curation to improve the streaming experience. While these ideas may not be popular with streaming services and labels, prioritizing consumer experience and fair compensation for artists should be a priority for the industry.
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