Universal Music Group Embraces AI and SPILL is coming for Twitter

Welcome to my newsletter What ladidai Has to Say, where I discuss tunes, tech, and trends that interest me. I’m ladi and I’m happy to have you! Today’s sixth edition is about the first ever major label AI music partnership, forged by Universal Music Group & Endel and how ex-Twitter employees might give Elon’s Twitter a run for its money with SPILL.

Let’s get into it.

Universal Music Group Changed Its Mind About AI

Sheesh. That was quick. Who could’ve seen this coming?

If you’ve been reading my newsletter for some time, you’re aware that I have been providing updates on AI music and how major labels like Universal Music Group have been responding.

UMG CEO Lucian Grainge has expressed his disdain regarding AI music on multiple occasions and recently, UMG reported to Spotify that AI music company Boomy was allegedly falsifying streams on several of their 14 million songs.

Now, the tables may be turning.

In a press release today, UMG announced that it is partnering with artificial intelligence company Endel.

Endel is an AI sound and wellness company. The partnership will allow UMG artists to create machine-learning-generated sounds for activities like sleep, relaxation, and focus.

Endel uses artificial intelligence to create personalized soundscapes that are tailored to the user's needs. The company's algorithms take into account factors like the user's location, time of day, and activity to create a soundscape that is designed to promote relaxation, focus, or sleep.

The partnership with Endel is a significant development for the music industry. This marks the first time in history that a major record label has partnered with an AI music company.

So why is the UMG x Endel partnership so important for UMG?

• Increased music discovery: With its 1 million users and counting, Endel's soundscapes will work as a top-of-funnel method by leading users to discover new and catalog records made by UMG artists, which will ultimately lead to increased sales and streaming revenue for UMG artists, songwriters, and producers.

• Additional revenue streams: Besides the generation of streaming revenue of the AI tracks and the trickle-down to existing tracks, the partnership will generate new revenue for UMG through licensing deals, advertising, and product sales—without any additional effort from artists to create new music. Previously, the only ways for rights holders to generate direct revenue from existing tracks besides streaming/ sales was through sync, remixes, or sampling, but now AI is doing all the heavy lifting. This is effectively allowing for the potential doubling of the maximal revenue that was possible.

• Overall industry impact: Universal Music Group is the largest music company in the world. It’s a big deal for them to so swiftly announce their integration of artificial intelligence following weeks of staunch opposition. And it’s bound to cause a ripple effect. If Warner and Sony were feeling apprehensive, this recent change of events will certainly serve as a signal for them to follow suit in whichever way they see fit.

• Improved brand image: When you think “cutting-edge” or “future-focused”, a major label is the last type of company to come to mind. Especially not one that still uses Uniport (no tea, no shade). This partnership could help UMG to improve its brand perception. By associating itself with an emerging technology company, especially one that operates in such a way that isn’t controversial and that’s environmentally friendly, UMG is beginning to prove the establishment can adapt to the times too.

This partnership is still in its early stages, but it has the potential to revolutionize the way that music is created and consumed. It will be interesting to see how things develop in the next few quarters and beyond.

UMG's partnership with Endel is likely part of the company's broader effort to embrace artificial intelligence. Though UMG has yet to mention any other endeavors, I can’t imagine that their foray into the world of AI music will stop here. Maybe the next time AI Drake appears on Spotify, it’ll be through the label.

It seems that by now, the major labels have come to understand that if you can’t beat em, join em—quickly. After all, 70% of companies are expected to use AI in one form or another by 2030. It was only a matter of time.

Now, we wait. Try out Endel for yourself here.

Watch out, Twitter. It’s Tea Time on SPILL

Twitter is currently the go-to app for spilling tea, but that may change this year.

I mentioned a few newsletter editions ago that Bluesky and Nostr are current viable competitors and Instagram (Meta) is coming with their own Twitter clone shortly.

But neither of those may compete with SPILL in terms of cultural impact.

SPILL is a Black-owned social media startup founded by Alphonzo "Phonz" Terrell and DeVaris Brown, two former Twitter employees. Last quarter, it was reported that they closed a $2.75 million pre-seed round. They also have the likes of activist and author DeRay McKesson on their advisory board.

SPILL is designed to be a more inclusive and equitable social media platform than Twitter. The company has a focus on creating a safe space for Black and Brown users as well as the LGBTQIIA+ community. SPILL is still in development, but it is expected to be released in Q2 2023 (aka soon).

Similarly to Nostr and Lens Protocol, SPILL utilizes blockchain technology to compensate users for viral content, but it’s not a web3 company. All payments will be made in USD. Interestingly, SPILL also leverages AI for content moderation purposes, specifically to protect marginalized groups who have historically been discriminated against by traditional social media platforms. Like TikTok and Instagram, SPILL also has content partners for its creators.

I’ve recently been invited to give SPILL a spin in closed beta, so I’ll try it out and share my findings.

I firmly believe SPILL could become the next big thing in social because of how they’ve solved for both DEI and monetization pain points with the help of emerging technology. The tech is one thing, the incorporation is another, but the understanding and appreciation of culture is what will really separate SPILL from the pack. We’ve seen time and time again how marginalized communities, especially Black people, have elevated the experiences (and equity) of apps like Twitter and Clubhouse, with little to no recognition or financial gain. SPILL is determined to change that first and foremost and because of that, they’ll remain in the conversation.

Join the 60,000+ folks on the waitlist now. You don’t want to miss out on this.

ladidai is a web2.5 music tech professional with a passion for music, emerging technology, pop culture, social media, and the creator economy. Learn more here. If you enjoyed, please share! Send all inquiries to [email protected]. And feel free to join in on the conversation by commenting below.