Artificial Intelligence in the Music Streaming Value Chain: Exploring Artists' and Users' Perceptions on Content Creation and Algorithmic Consumption

Alberto Arenal, Juan Miguel Aguado, Cristina Armuña, Sergio Ramos and Claudio Feijóo

33rd European Regional ITS Conference, Edinburgh, 2025: Digital innovation and transformation in uncertain times from International Telecommunications Society (ITS)

Abstract: Artificial Intelligence (AI) plays a pivotal role throughout every stage of the music industry value chain. In fact, AI has been integral to the value proposition of music streaming platforms since their inception. This research article investigates how AI—and in particular, Generative AI (GenAI)—affects the creation and consumption stages, the two most socially significant components of the music streaming value chain. It explores users' perceptions of the impact of AI/GenAI on their music-listening experience and examines how artists and performers view the role and influence of AI on their position and opportunities within the streaming model. Drawing on the findings from two separate focus groups with users and artists / performers from different geographies and professional development, this study complements industry debates—often dominated by technology companies and record and publishing firms—by providing valuable insights into the perceptions at both ends of the music industry value chain regarding the impact of these technologies on music creation, dissemination, and consumption. As key findings, while users exhibited a nuanced response to AI-generated music, both existing literature and insights from artists and performers suggest that AI may further amplify the endemic dysfunctions of music streaming platforms, arising governance issues and ethical concerns, particularly regarding to transparency. In addition, both groups highlighted a significant paradox: while AI has the potential to democratise music creation by lowering barriers to entry, it also poses a threat to the existing ecosystem of music professionals, which have relevant implications in terms of the role of culture in societies, policy and practice.

Keywords: Artificial Intelligence; Generative Artificial Intelligence; digital music value chain; music performers; streaming platforms; consumption of music (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-ain and nep-cul
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