Key Industry Updates, October 2025
The intersection of technology and music continues to evolve rapidly. This month’s industry headlines highlight major developments in AI-generated music, rights management, and market shifts that will shape how creators and companies approach royalties and licensing in 2026.
AI Music Takes Center Stage — From Lawsuits to Licensing
AI-generated music remains one of the most talked-about issues in the industry. Udio, the AI music startup previously sued by Universal Music Group (UMG) over copyright concerns, has settled the case with undisclosed terms (Billboard). The settlement marks a crucial moment — suggesting that major labels are moving toward coexistence rather than confrontation with AI music platforms.
Meanwhile, OpenAI, reportedly valued at over $500 billion, is now exploring entry into the AI music sector (Music Business Worldwide). With generative AI tools already transforming songwriting and production, the company’s expansion into music could accelerate the need for clear frameworks around ownership, royalties, and attribution.
PROs Begin Accepting Partially AI-Generated Works
In a groundbreaking shift, ASCAP, BMI, and SOCAN have begun accepting registrations of partially AI-generated musical works (MBW).
This decision acknowledges the growing role of AI in the creative process — and provides a much-needed path for creators to ensure AI-assisted compositions are properly registered and monetized. For songwriters and publishers, this means revisiting metadata, splits, and registration practices to ensure that AI-assisted contributions don’t create rights gaps.
Spotify Price Hikes and Market Implications
Spotify has again raised its Premium subscription prices in the UK and Switzerland, with analysts predicting U.S. increases by early 2026 (MBW).
While these adjustments aim to offset rising operational costs, they also reflect a maturing streaming economy — one where higher subscription fees may gradually improve per-stream payouts. However, whether these gains will meaningfully impact artist and songwriter royalties remains to be seen.
UMG’s Acquisition Probe and Financial Performance
The European Commission has restarted its antitrust probe into Universal Music Group’s $775 million acquisition of Downtown Music Holdings, with a new deadline for a decision set later this year (MBW).
This deal, which consolidates distribution and rights management infrastructure under UMG, raises questions about competition and data access across the independent sector.
In related financial news, UMG’s Q3 2025 results show steady revenue growth, driven by streaming and catalog income (Billboard). The label giant continues to diversify its income streams through technology partnerships and expanded rights management, signaling how the major players are adapting to new market realities.
What It Means for Music Professionals
For artists, songwriters, and labels, these updates underline the importance of robust rights management and registration practices. With AI, streaming, and licensing models shifting, the fundamentals remain clear:
Register every work and collaboration with your PRO and publishing administrator.
Track and verify metadata across all digital platforms.
Stay informed on how AI-generated content affects ownership and royalty eligibility.
To help you stay organized, download our Royalty Checklist for Music Professionals — a practical guide by Divided By Three to ensure no income stream is left unclaimed.
