Universal Music Remains Central Even in the Age of Artificial Intelligence, Setting It Up to Prosper

Universal Music should be a primary beneficiary of the ongoing growth we expect throughout the music industry. Fears about artificial intelligence-generated music have recently sparked concern that these recordings will take share from the human artists on which Universal relies, but we think these concerns are overstated. Unless consumers are willing to forgo human-created music, the power Universal has over “real” music gives it leverage to continue taking its historical share of revenue on subscription streaming platforms, which account for the bulk of its sales.