Artificial streaming manipulation, AI-generated content and evolving licensing models are raising new challenges for the music streaming ecosystem. This article explores how fraud, fairness and infrastructure will shape the future health of the music streaming ecosystem.
This article is part of Tuned Global’s SXSW series exploring the future of streaming in a superfan era. The series examines four themes shaping the next chapter of the music industry: fan engagement, monetisation beyond streaming, ecosystem integrity and new vertical opportunities.
The superfan era promises deeper engagement and diversified revenue.
But it also exposes structural vulnerabilities.
As Brian Zisook, Co-Founder of Audiomack, stated bluntly:
“There are billions — with a B — in royalties not going to the right people.”
Artificial manipulation and fraud are siphoning value from legitimate creators.
The scale of the problem has grown alongside the rapid expansion of global streaming platforms.
With global recorded music revenues now reaching $29.6 billion annually, even relatively small distortions in streaming activity can significantly affect how royalties are distributed across the music streaming ecosystem.As music streaming platforms scale globally, protecting the integrity of royalty distribution has become a critical challenge for the industry.
“Buffet style” distributors allow unlimited uploads for minimal fees.
The cost burden of hosting that content falls on platforms — even when it is not consumed.
Brian described the consequence:
“That’s money we can’t invest in helping artists get discovered or improving the product.”
AI-generated spam uploads exacerbate the issue. Individually, micro-payments appear negligible. Collectively, they distort royalty pools. Fraud is not a fringe issue. It is ecosystem-wide.
Streaming fraud refers to artificial manipulation of music streams through bots, automated listening farms or fraudulent uploads designed to generate illegitimate royalty payments.
SoundCloud’s Fan-Powered Royalties model reallocated payouts based on individual listener behaviour.
Jordan Pettinato, Senior Director of Business Development and Partnerships at SoundCloud, confirmed:
“It does exactly what we said it would do.”
Smaller artists with engaged audiences benefit more directly.
Label partners signed on, acknowledging it as "A more equitable solution.”
However, Jordan admitted:
“It’s a difficult concept for the average user or artist to fully understand. Education and transparency remain critical."
AI will reshape licensing within five years.
Jordan predicted:
“The way AI content is treated will dramatically change.”
Con Raso, CEO of Tuned Global, also pointed to another potential shift: the economic incentives driving AI adoption.
In some scenarios, companies may turn to AI-generated music not because it creates a better experience, but because it allows them to avoid licensing costs associated with commercial recordings.
That possibility raises important questions about how the industry balances innovation with fair compensation for creators.
Metadata standards, monetisation eligibility and licensing frameworks will evolve.
Derivative works will also be re-evaluated.
Audiomack’s AudioMod and Tuned Global AutomixIQ demonstrates one pathway: enabling user modification while consolidating plays under the original recording.
Jordan observed:
“The way we treat derivative works will change drastically.”
Historically, the music industry has fought derivative culture before monetising it.
Remixes.
Open verse challenges.
User-generated content.
The pattern is clear.
Jordan also raised another concern:
“Gamification… incentivising rapid consumption versus depth of experience.”
As major platforms optimise for engagement metrics, there is a risk of superficial interaction overtaking meaningful fandom.
The superfan era must avoid becoming the “infinite scroll” version of streaming.
Janishia Jones, who works on creator and rights infrastructure initiatives in the music ecosystem, highlighted that"fingerprinting and centralised data are key to the next phase".
Detection automation.
Clear rights pathways.
Empowered creators managing their own businesses.
Without infrastructure, democratisation collapses.
The streaming industry is entering a more mature phase.
As the industry evolves, companies like Tuned Global are focused on helping partners manage licensing, rights and catalogue delivery in ways that support both innovation and fairness across the ecosystem.
Join the conversation on March 15, 2026 at SXSW.
This article was written by the Tuned Global team following discussions with industry leaders including Con Raso (Tuned Global), Brian Zisook (Audiomack), Jordan Pettinato (SoundCloud) and Janishia Jones.