Question of the Day

Deezer's AI music problem and its fraud problem in streaming economics are interlinked but distinct aspects of the current streaming ecosystem. On one hand, Deezer faces a flood of AI-generated music, which accounts for 44% of daily uploads, equivalent to about 75,000 AI tracks processed daily [1]. Although AI music is a significant portion of new uploads, it represents only 1-3% of total streams due to the fact that 85% of AI-generated streams are flagged as fraudulent and subsequently demonetized [2].

The fraud problem specifically stems from the misappropriation of royalties, as exemplified by cases like the viral AI-manipulated track "Run Run River" by Stick Figure, where royalties were wrongly allocated to others instead of the actual artist [3]. This highlights that, while Deezer is inundated with AI content, their primary economic concern is the fraud associated with these AI-generated streams, which leads to revenue loss and misallocated payments that undermine artists' earnings and the platform's credibility [3].