The Future of Music Licensing: Stock Music, PROs, and the Rise of AI

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The music industry is undergoing a seismic shift, with creators facing challenges from every direction. Stock music libraries are struggling, PROs (Performance Rights Organizations) are becoming increasingly saturated, and AI-generated music is looming on the horizon. For independent musicians, these changes raise important questions about sustainability and how to navigate this evolving landscape. Let’s dive into the key issues and explore potential solutions.

Stock Music: A Dying Market?

For years, stock music has been a reliable source of income for many musicians. However, the market is now under immense pressure due to several factors:

  1. Oversaturation: The sheer volume of tracks available in stock libraries has made it difficult for individual pieces to stand out.
  2. Price Competition: Platforms are racing to the bottom with low-cost subscription models, reducing payouts for creators.
  3. AI Disruption: AI-generated music is flooding stock libraries, offering cheap and customizable alternatives that further dilute earnings.

As a result, some musicians have decided to abandon stock music altogether and turn to PROs as a more stable revenue stream. But is this truly a viable solution?

The PRO Dilemma

PROs like ASCAP, BMI, and PRS play a critical role in collecting royalties for public performances, broadcasts, and streaming. Registering with a PRO can provide musicians with access to global royalty collection networks. However, this path is not without its challenges:

  1. Library Saturation: As more musicians join PROs and register their works, the size of their catalogs grows exponentially. This means that individual tracks may receive fewer plays or smaller payouts as the pie is divided among more creators.
  2. Increased Competition: With streaming platforms dominating the music landscape, competition for listener attention is fierce. Even with PRO representation, securing significant royalties requires high play counts—something that’s becoming harder to achieve.

While PROs offer certain advantages over stock music libraries, they are not immune to the same underlying issue: oversaturation.

The AI Factor

One of the most pressing concerns for both stock music and PROs is the rise of AI-generated music. Currently, many AI-generated tracks are not registered with PROs, but what happens if (or when) they become eligible?

Potential Impacts:

  • Massive Influx of Tracks: AI can produce an unlimited number of songs at minimal cost. If these tracks are registered with PROs, they could overwhelm existing catalogs.
  • Revenue Dilution: With more tracks competing for the same pool of royalties, payouts per track could decrease significantly.
  • Creative Homogenization: While AI excels at mimicking styles and genres, it often lacks the emotional depth and originality that human composers bring to their work. However, its sheer volume could still overshadow human-made music in many contexts.

The inclusion of AI-generated music in PRO systems could exacerbate the very problems musicians are trying to escape by leaving stock libraries.

What Can Musicians Do?

Faced with these challenges, independent musicians must adapt to survive in an increasingly competitive and automated industry. Here are some strategies to consider:

1. Emphasize Uniqueness

AI may be able to generate functional background music or mimic popular styles, but it struggles to replicate true human emotion and originality. Musicians should focus on creating works that stand out—whether through storytelling, experimentation, or tapping into niche markets.

2. Leverage AI as a Tool

Rather than viewing AI as an adversary, consider using it as an ally. For example:

  • Use AI tools to streamline production processes.
  • Collaborate with AI to create hybrid works that combine human creativity with machine efficiency.

3. Diversify Revenue Streams

Relying solely on stock music or PRO royalties may no longer be sustainable. Explore alternative income sources such as:

  • Crowdfunding platforms like Patreon or Kickstarter.
  • Selling exclusive licenses or custom compositions directly to clients.
  • Experimenting with NFTs (non-fungible tokens) to monetize unique works.

4. Advocate for Fair Regulation

As AI becomes more integrated into the music industry, there will be a growing need for clear policies around its use in licensing and royalty systems. Musicians should stay informed and advocate for regulations that protect human creators.

Conclusion

The music industry is at a crossroads. Stock music libraries are struggling under the weight of oversaturation and low-cost competition, while PROs face similar challenges as their catalogs grow larger and streaming dominates consumption habits. Meanwhile, AI-generated music threatens to disrupt both spaces by flooding the market with cheap, abundant content.

For independent musicians, survival will depend on adaptability—leveraging creativity as a competitive advantage while exploring new revenue models and embracing technological tools where appropriate. The road ahead may be uncertain, but those who innovate will find ways to thrive in this rapidly changing landscape.

What do you think about the future of music licensing? Are you optimistic about adapting to these changes? Share your thoughts in the comments below!

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