BEIJING — Revenue from music created entirely or partly by artificial intelligence is rising at one of the fastest clips in China’s entertainment sector, according to new industry figures reviewed by SourceRated.
The China Online Music Association, a semi-official trade group, estimates that AI-assisted tracks generated about 410 million yuan (USD 58 million) in domestic sales in 2023, a 45 percent jump from the year before. Income includes streaming royalties, advertising tie-ins and licensing for short-video platforms, the association said in a report circulated to members late Monday.
Much of that growth is being driven by the country’s dominant audio services. Tencent Music Entertainment told analysts during its March earnings call that its Lyra composition engine helped users create more than 12 million songs last year, some of which have been bundled into curated playlists that sell sponsorship slots to brands. Rival NetEase Cloud Music and start-ups such as Beijing-based AIGC SoundVerse are rolling out similar toolkits, people familiar with the matter said.
“Production costs for a three-minute pop single can fall below 200 yuan when generative models handle melody, arrangement and rough vocals,” said a Shenzhen-based music producer who asked not to be named because he is not authorised to speak publicly. “The margins are attracting both labels and independent creators.”
The commercial momentum is also catching the eye of regulators. Two officials close to the Ministry of Culture and Tourism told SourceRated that draft licensing rules for AI-generated songs have been circulated among major labels, with a public consultation expected in the second half of 2024. Key issues include copyright attribution for training data and disclosure requirements for synthetic vocals that mimic living artists.
Analysts at BOCOM International project that China’s AI-music market could pass the one-billion-yuan threshold as early as 2025 if the regulatory framework remains supportive. “Advertisers value the speed at which personalised jingles can be turned around,” analyst Li Wen wrote in a client note. “But lingering legal questions could slow adoption in export markets.”
Still, some musicians worry the boom may commoditise their craft. “If every influencer can spin up a theme song in minutes, the value of professional composition risks dilution,” said Liu Yuwei, a songwriter based in Chengdu.
For now, investors appear unfazed. Shares of Tencent Music and NetEase edged higher in Hong Kong trading Tuesday, extending last week’s tech rebound. Whether enthusiasm survives the policy review — and whether AI hits can travel beyond China’s vast domestic streaming universe — will shape the next movement in the country’s fast-evolving music scene.