Unleashing Creativity: Tech’s Transformation of Modern Music and Media | Global Conference 2024

Market Outlook & Industry Metrics

• Goldman Sachs forecasts global music profits to grow at 7.9% in the current year.
• 2023 is identified as a turning point marked by the first major global streaming price increase, royalty structure modernization, and generative AI deployment.
• 84% of music consumed in the U.S. is accessed via mobile phones, driving the democratization of the industry.
• The trajectory of the music business shows no signs of slowing past 2030.

Structural Shifts in Music Consumption

• The 1996 Telecommunications Act triggered a consolidation wave, paving the way for entities like Clear Channel, Polygram/Def Jam, and the modern Universal Music Group.
• The rise of streaming (2012–2015) democratized the landscape, allowing artists to bypass traditional "major label" gatekeepers and connect directly with audiences.
• Usher became the first independent artist to headline the Super Bowl, achieving a number-one record across three formats without a traditional major label deal.
• Independent artists like 4BATS (Dallas), Sexyy Red, and Peso Pluma are achieving top chart positions, with Sexyy Red cited as a major breakout star outside of the three major labels.
• Discovery methods have shifted from physical venue scouting (e.g., CBGB's, Max's Kansas City) to online platforms like TikTok and Instagram Reels.

Gamma's Business Model & Strategy

• Gamma, co-founded by Larry Jackson and Usher, operates on a partnership thesis where artists retain ownership of their masters and revenue rights, rather than selling catalogs for upfront capital.
• The company achieved a $420 million post-money valuation within a year of founding.
• Gamma's distribution technology is currently growing at a rate of 60% to 70% year-over-year.
• The company pioneered a "music commerce marketplace" strategy, partnering with Skims to sell Usher's album Coming Home directly through the fashion brand's checkout process, bypassing reliance on standard streaming subscriptions.
• Gamma plans to expand its premium client services over the next 18 months.

Technological Innovations & Generative AI

• Gamma is utilizing generative AI to create real-time revenue calculators for artists, predicting earnings weeks or months in advance.
• As a result of AI automation, Gamma has implemented a payment model where premium clients (including artist Russ) receive royalties weekly, contrasting with the industry standard of biannual or annual payouts.
• Usher expresses a cautious but open stance on AI, viewing potential for honoring deceased artists while emphasizing the irreplaceable value of the "creator" over the "creative."
• Larry Jackson notes that generative AI is one of few sectors generating actual profit outside of buzzwords like NFTs or Web3.

Key Perspectives on Artist Agency

• Larry Jackson states that Usher's recent peak success (including 10 sold-out nights at London's O2 Arena) would likely not have been achievable without the independent route.
• Usher attributes his success to maintaining direct relationships with consumers and leveraging technology to control the narrative and creative process.
• Gamma positions itself as a custodian for artists like Snoop Dogg (Death Row catalog) and Usher, offering development and global touring support without claiming ownership of master recordings.