Music Artists Coalition (MAC), a nonprofit dedicated to advocating for music creators, has responded to Universal Music Group’s new AI deal with Udio, asking questions about how artists will be compensated. “We’re cautiously optimistic but insistent on details,” said Jordan Bromley, leader at Manatt Entertainment and board member of MAC, in a press release put out by MAC on Friday (Oct. 31).
The UMG-Udio deal, which was announced Wednesday night (Oct. 29), is multifaceted. First, it involves a “compensatory” legal settlement for UMG, which sued Udio last summer, along with the other major music companies, for copyright infringement of their sound recordings during Udio’s training process. (Sony and Warner’s lawsuit against Udio is ongoing.)
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It also provides go-forward licensing agreements for UMG’s recorded music and publishing assets, which is said to open up a new revenue stream for the company and its signees who decide to opt in. Those artists and songwriters who participate will be compensated for both the training process of the AI model and for its outputs, according to a source close to the deal.
As part of the agreement, Udio plans to pivot its offerings significantly. In 2026, the company will launch a new platform “powered by new cutting-edge generative AI technology that will be trained on authorized and licensed music. The new subscription service will transform the user engagement experience, creating a licensed and protected environment to customize, stream and share music responsibly, on the Udio platform.” This will include new tools that let fans remix, mashup and create songs in the style of participating UMG artists. It will also allow fans to use UMG artist voice models.
Opting into the Udio deal is not a one-size-fits-all approach. According to a recent interview with Udio CEO Andrew Sanchez about the deal, the company “[has] built and invested an absolutely enormous amount into controls. Controls over how artists’ songs can be used, how their styles can be used, really granular controls…One of the things that you’ll see is we’re going to launch with a set of features that has a spectrum of freedom that the artist can control.”
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One area that Sanchez and UMG’s announcement about the deal did not provide clarity on was how exactly participating artists will be compensated. This is why MAC put out a press release on Friday (Oct. 31) asking exactly what is going on — and noting the organization is only “cautiously optimistic” about the agreement.
As Irving Azoff, top artist manager, entrepreneur, board member and founder of MAC, put it in the announcement: “Every technological advance offers opportunity, but we have to make sure it doesn’t come at the expense of the people who actually create the music — artists and songwriters. We’ve seen this before — everyone talks about ‘partnership,’ but artists end up on the sidelines with scraps. Artists must have creative control, fair compensation and clarity about deals being done based on their catalogs.”
The press release goes on to say that while MAC appreciates that the deal is “opt-in” and with “granular control,” the organization still has questions, which are quoted below:
- “Meaningful consent: How do artists actually control what uses they authorize? What happens when multiple songwriters or performers on a single song disagree about participation?”
- “Revenue splits: What percentage of revenue goes to artists versus the label versus the AI company when their music is used to train models or generate new works?”
- “Data and deal transparency: Was settlement money paid? How will that be distributed to artists? Will artists’ pay-outs for a new revenue stream just be applied to old unrecouped balances? Will artists see exactly how their work is being used within the AI system and have ongoing visibility into its use?”
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“Artist opt-in sounds promising, but participation without fair compensation isn’t partnership; it’s just permission,” said Ron Gubitz, MAC’s executive director, in the press release. “Artists create the work that makes these AI systems possible. They deserve both control over how their work is used and appropriate compensation for its value generation. It’s the three C’s: consent, compensation, and clarity.”
“The music industry is at a crossroads,” Gubitz added. “The decisions being made right now will shape how music gets created, distributed, and monetized for decades to come. That’s exactly why MAC exists — to ensure artists have a seat at the table when those decisions are made.”
Bromley added: “True partnership requires appropriate oversight and remuneration for all involved parties. The industry needs to get this right — for artists, for fans, and for the future of music itself.”
