The Game Has Changed,Not Ended.
Universal’s New Deal With Udio Doesn’t Spell the Death of Production Music Libraries
It Just Changes the Game.
From what's been shared publicly, the new Udio platform lets users generate and play AI-generated music. Downloading those creations is where things get messy. After the Universal settlement, Udio temporarily paused downloads, creating confusion and backlash from its users. A 48-hour window starting today (Nov. 3) allows Udio users to download their existing songs under the terms that existed before the Universal Music settlement.
Downloads from AI-generated platforms—and what users can and can’t do with those downloads—are already complicated. Fully AI-generated music can't be registered with PROs or the United States Copyright Office. That means even if a platform says “commercial use is allowed,” creators don’t have the same legal security they would have from human-made music. The rights needed for commercial use, synchronization licensing, and derivative works remain unclear with AI-generative platforms.
All of this creates risk, but it also creates opportunity for production music libraries and music supervisors who can provide clarity and human creativity.
The world still coexists with McDonald's and high-end steak restaurants. AI-generated music will flood the market like fast food—cheap, fast, and serviceable for some people. But story-driven projects still need human taste and emotional storytelling.
AI-generated platforms will become tools for composers, not replacements. AI can create melody, rhythm, and harmony, but it cannot understand narrative or emotional arc. Composers and music supervisors may adapt their workflows, but their taste, skill, and creative judgment will remain irreplaceable.
New AI technology hasn’t erased the ambiguity we’re facing. Copyright law still favors human authorship. Questions about derivative works, training data, and ownership of outputs remain wide open.
Last week’s Udio user backlash revealed another issue: paying users being told they suddenly can’t download their own works, or that terms of service are changing. This undermines trust and stability. Users are caught in shifting rules and unclear licensing frameworks.
Universal and Udio have stated they will now create an “Opt-In” agreement for artists, but it remains unclear how music already used to train the AI will be handled. This unresolved question points directly to the ongoing ambiguity around rights, ownership, and compensation in the AI music space.
As I see it, this “Opt-In” approach exposes an even bigger challenge. AI trains on millions of songs to generate a single element—a kick drum, a melody, a cymbal hit. Even if an artist opts in with ten songs, platforms cannot track which pieces contributed to a specific output. Compensation, if any, will be microcents. AI can’t say, “these 12 songs shaped this output.”
This is the reality of AI-generated revenue for artists and publishers—and it only amplifies why human-created, rights-cleared music retains both its value and its impact.
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We are witnessing evolution, not extinction.
Offer what AI can’t. As new platforms emerge—vertical dramas, social content, apps, interactive experiences—we need to work together to define the value of the music we create and license. Yes, it’s messy. But that’s exactly where the opportunity lies. PROs, publishers, and music organizations play a critical role in helping creators and clients navigate these new waters, ensuring music retains both its value and its impact.
Creative judgment, compliance clarity, rights certainty, and storytelling will continue to resonate. Human-made, rights-cleared music will remain essential. And now more than ever, in a landscape filled with legal gray zones and algorithmic sameness, is where we’ll find opportunity.
#MusicIndustry #AIMusic #ProductionMusic #MusicSupervision #MusicLicensing #CreativeOpportunity
