When I was learning the guitar by mishearing guitar riffs and chord progressions and watching the occasional VHS instructional video, Gen-AI, Blockchain, Web3 and NFTs were concepts that sounded as alien as avant-garde jazz to me. I did learn to appreciate avantgarde jazz, though, and the concepts mentioned are today’s buzz words in the music industry.
These technologies are fundamentally transforming how music is created, distributed, and consumed. Some (read: Gen-AI) are resonating more loudly and impact with a notably higher tempo than others, but 2025 are shaping up to be a pivotal moment in music technology, with several key trends poised to reshape the industry landscape.
AI-Powered Music Creation Goes Mainstream
In 2024 generative-AI was the «big hit» for content creators in all walks of life and throughout all types of disciplines. The music industry saw its first lawsuits brought against services that offer music generation based on historic data/songs, when the major labels sued Suno and Udio for copyright infringement.
Other players, including OpenAI and Google jumped on the band(wagon) with music generation solutions, and it is not the most audacious prediction to claim that this market will mature and legislation with it. The industry is grappling with questions about the rights to AI-generated music and the use of existing compositions in training these models. Expect to see new legal frameworks and industry standards emerging to address these concerns.
Building on the foundation laid by early AI music generation tools, we’re seeing the emergence of more sophisticated platforms that offer more nuanced control over musical elements while maintaining artistic authenticity. Professional musicians are increasingly incorporating AI as a collaborative tool rather than viewing it as a threat, using it for everything from chord progression suggestions to complete orchestral arrangements.
Maybe the most pertinent «threat» is not so much AI «stealing musicians gigs», but that over reliance on these tools will create even more sterile and uniform forms of audio expression? Major music production software companies are integrating AI capabilities directly into their digital audio workstations (DAWs), making AI-assisted composition and production accessible to creators at all levels.
My prediction is, this will elevate the production rate and the level of professionalism of productions, but will not boost creativity. Effortlessness has never been a fundamental element in creating genius. However these tools are becoming particularly valuable for independent artists who can now access virtual session musicians and producers at a fraction of the traditional cost.
The Promise of Music NFTs and Web3 Integration Finally Fulfilled?
While the initial NFT hype has settled, 2025 marks the mature implementation of blockchain technology in the music industry. Smart contracts are possibly on the verge of becoming standard in music licensing and royalty distribution, offering unprecedented transparency and efficiency in payment systems. Artists are using NFTs not just for digital collectibles but as a means of creating exclusive experiences and building deeper connections with their fans.
I have previously made the argument that the attitude towards music NFTs need to shift from the idea of a «get rich scheme» to more of a «patronage attitude». That is investing in cool, artistic projects for the sake of it, and with a potential bonus pay-off.
The concept of “Dynamic NFTs” is now gaining traction, where the digital assets evolve based on various factors such as streaming numbers, concert attendance, or fan interaction. This creates a more engaging and valuable experience for collectors while providing artists with new revenue streams.
I remain convinced of the potential of Blockchain and NFTs, and it’s just a natural, organic innovation lifecycle where hype is followed by bubbles bursting, before a more balanced and nuanced system emerges.
Spatial Audio and Immersive Experiences
The rise of spatial audio technology is transforming both music creation and consumption. Major streaming platforms are making spatial audio their default streaming format, pushing creators to mix their music with a three-dimensional approach in mind. This shift is particularly significant as it coincides with the increasing adoption of advanced audio hardware in homes and cars.
Virtual and augmented reality concerts are accelerating beyond simple digital reproductions of live shows. Artists are creating hybrid experiences that blend physical and digital elements, allowing fans to participate in immersive musical experiences regardless of their location. These technologies are also enabling new forms of musical collaboration, with musicians able to perform together in virtual spaces where you just need to be in a somewhat similar time zone (or be a night-owl).
This practice also fosters creative cross-disciplinary collaborations, and as such represent an example of where technology actually boosts creativity. Despite all the frantic innovation in and around Artificial Intelligence, we are perhaps not seeing too many examples of technology enabling artistic creativity.
Stream of (un)Consciousness: What’s next for DSPs?
Streaming platforms are undergoing significant changes in response to artist and consumer demands. New monetization models are emerging that better reward artist engagement and listener loyalty. We’re seeing the introduction of tiered streaming services that offer different levels of audio quality, exclusive content, and interactive features.
Additionally, AI-powered recommendation systems are becoming more sophisticated, moving beyond simple genre-based suggestions to understand the emotional and contextual aspects of music. This leads to more personalized and engaging listening experiences, potentially increasing user retention and subscription values. I predict we’ll see a new major player (literarily) that will challenge the incumbent DSPs with a novel approach to serving contextual listening and (hopefully) a fairer remuneration model.
Data Analytics and Turning Up the Artist’s Voice in the Mix
One clear upside to the tech revolution the music industry is the democratization of production and distribution and of music industry data. Artists and independent labels now have access to sophisticated analytics tools that were previously only available to major labels. These tools provide real-time insights into listener behavior, marketing effectiveness, and revenue streams, enabling more informed decision-making about touring, releases, and promotional strategies.
This is what notefornote is dedicated to, creating the tools that elevate the artist’s voice (and career) with a minimum of fuzz. We firmly believe AI is a game-changer on every level of the industry, and if handled with care, could put much more control, and revenue, in the hands of artists. Today’s artists have to wear too many hats; artist, manager, marketeer etc., and the right mix of data and automation can remove that excess weight, and let artists focus on their art.
Distortion in the Mix
Despite these exciting developments, the industry faces several challenges in 2025:
1. The need to balance innovation with artist rights and fair compensation
2. Growing concerns about the environmental impact of blockchain technology and cloud-based music services.
3. The risk of market oversaturation as AI tools make music production more accessible
4. A «banalzing» of music creation due to AI generated music.
5. Privacy concerns around the collection and use of listener data.
Fast Forward
It is a bittersweet irony that most dials for the music industry are pointing up, except for the dial that marks the general musician’s income. Streaming and vinyl made 2024 a record year for music sales.Total concert grosses increased: Compared to the same period in 2023, there was an 8.7% increase in total concert grosses. (source: Pollstar) The number of shows surged by 16.7%, and the average ticket price rose by 9.4% to $127.30. Despite the overall increase in grosses, the average gross per show has dropped by 6.9%.
As always, the live show revenue is «top heavy», meaning the major artists rake in the vast majority of the revenue. For the majority of gigging musicians, the rise in costs, transport etc. has made it increasingly hard to make profit from live gigs. Macro-economical challenges are hard to affect, and the ticket buying public, hit by the same economical shifts can’t make up for the dwindling revenue.
The overall situation for the individual artist can feel overwhelming, but there is still a lot of potential for the music industry transforming into a more technologically integrated and democratized space. The successful adoption of these new technologies will depend on how well the industry addresses those key challenges listed while maintaining the human element that makes music the most powerful of artistic expressions.
