The rapid evolution of technology is transforming the entertainment industry, reshaping not only how creative work is produced and distributed but also how artists, writers, musicians, and other content creators sustain their careers. While digital platforms and AI-driven tools offer new opportunities for exposure and efficiency, they also introduce critical concerns around fairness, financial sustainability, and long-term career viability for entertainment professionals. From revenue-sharing models and algorithm-driven visibility to disputes over streaming data manipulation and defamation lawsuits, modern tech is redefining success in ways that often favor platforms over the creators themselves.
Recent high-profile conflicts like Drake v. UMG Music underscore these tensions. The lawsuit was based on Drake’s allegations that UMG and Spotify inflated the streams of “Not Like Us,” a diss track aimed at Drake by rival rapper Kendrick Lamar. The case highlighted the growing friction between creators and platforms over transparency, data accuracy, and the perception of success in the streaming era. Our entertainment attorney can help creatives in New York navigate these legal and economic shifts, advocate for fair compensation, and safeguard their long-term professional sustainability in a fast-changing digital ecosystem.
For any artist, the first step to success is getting their music heard. Artists used to have to rely on music distributors to deliver their work to the public, especially when success was primarily tied to physical sales of records or CDs. Now, it’s become common for artists to use digital platforms and social media to reach fans directly, bypassing traditional distribution channels. Though many artists love the freedom to release music online, streaming comes with its own issues.
First, while physical sales are still relevant, the number of streams has become the primary way to determine a track’s success. Some feel that this has created an imbalance of power between musicians and music platforms like Spotify, YouTube, and Tidal. These services can use their market power to force artists into unfavorable licensing agreements that do not always reflect the market value of their work. Some artists have also accused streaming services of artificially inflating certain songs over others.
Streaming services have a lot of power when it comes to suggesting new music. Although algorithms help predict what songs a user will like, streaming services can boost a song by adding it to a popular daily playlist or featuring it prominently on the home page. More nefariously, streaming farms use people or bots to repeatedly stream a track, artificially boosting its numbers and misrepresenting the track’s true value and influence.
Artists who belong to a label have more leverage than independent artists since their label can negotiate with streaming services on their behalf, but then there are more parties cutting into the eventual payout. When many streaming services pay less than a penny per stream, this means many artists cannot survive on streaming alone. Here are a few examples:
Even with these tiny amounts per stream, the artist does not get it all. Most platforms keep a percentage for themselves, and then the distributor gets their cut. Whatever is left is divided between the song’s rights holders, which can include record labels, songwriters, publishers, and finally, the artist.
Some lawmakers have noticed this imbalance in power between streaming services and artists. The Protect Working Musicians Act, introduced in 2021, included provisions that would allow independent musicians to collectively bargain with major streaming platforms, putting them on a more even footing with label-represented artists. However, the bill is still in the early stages of progressing through Congress, and it’s unclear what kind of impact it will have. For the time being, one of the best ways an artist can protect themselves is to consult a New York entertainment lawyer familiar with music distribution and licensing issues. The lawyer can explain contract provisions and advocate for the artist with labels or directly with streaming services to get a fairer deal.
Music aficionados used to have to fantasize about what it would sound like if their favorite artist covered a certain song or if a music artist known for one genre suddenly switched gears and tried something totally new. But with Artificial Intelligence (AI), a quick search on YouTube or SoundCloud turns up tons of computer-generated songs like these – and these songs are getting plenty of streams.
For now, this type of work falls into a legal gray area. While many artists look forward to using AI to enhance their own creative work, the technology obviously raises ethical, legal, and financial concerns. Some legendary musicians and artists, including Dave Navarro, Sting, Nick Cave, Stevie Wonder, Elvis Costello and the estates of Bob Marley and Frank Sinatra, have been outspoken in their criticism of AI-generated songs.
Labels are unhappy with AI songs too. In another controversy involving Drake, the AI-generated track “Heart on My Sleeve,” which mimicked the voices of Drake and The Weeknd, went viral. Their label, Universal Music Group, fought for the track to be taken down, claiming that using their artists’ music to train AI amounted to a copyright violation. The label used a similar argument to get an AI-generated track in the style of Eminem removed.
While US Copyright law recognizes that AI-generated content without human input is not copyrightable, it is likely that Congress will have to directly address the use of AI to iron out some of these wrinkles. A version of the Protect Working Musicians Act was updated to also allow independent artists to collectively bargain with generative AI companies but lacked any substantive answers regarding copyright issues. The AI-generated music and copyright legal issue remains partially unresolved, and labels are actively challenging it.
However an artist feels, it is clear that AI is here to stay. In fact, it is only expected to become more accessible. Ultimately, artists may have to compromise with AI, viewing it as a new form of cover song or sample. A New York attorney specializing in entertainment law or intellectual property may be able to help with solutions using creative licensing arrangements or royalty-sharing agreements.
Rodriques Law, PLLC, is here to support and protect your career in the entertainment industry. As technology changes, you need to be prepared to protect yourself and your art. Contact us to learn more about balancing innovation and fairness while technology is redefining success for New York creatives in the entertainment industry.
