Music Industry Moves to Block AI 'Fake Streaming'... Joint Guidelines Established

Record labels and music distributors are stepping up efforts to block “streaming fraud,” where royalties are collected by mass-generating music tracks using artificial intelligence (AI) and repeatedly playing them back.

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On September 14 (local time), the Financial Times (FT) reported that record labels and music distribution companies have agreed on new guidelines to address this issue.

The industry estimates that currently about 10% of all streams are achieved through fraudulent means, with a significant portion of the content involved assumed to be AI-generated. This so-called “streaming fraud” typically involves inputting simple commands into an AI to generate a large volume of tracks, then using multiple bot accounts to repeatedly stream them and collect royalties. As a result of this process, the pool of royalties that should go to legitimate artists is proportionally reduced.

According to French music streaming service Deezer, over half of all newly uploaded tracks in July were AI-generated, with an average of 90,000 AI-generated songs uploaded each month. Last year, up to 85% of fully AI-generated music streams were found to be fraudulent plays.

The International Federation of the Phonographic Industry (IFPI), representing the global record industry, is set to officially announce that leading music distributors have agreed on new guidelines to block AI-generated tracks involved in streaming fraud from appearing on streaming platforms. Victoria Oakley, CEO of IFPI, sharply criticized the issue, saying, “Streaming fraud deceives fans and deprives artists and songwriters of the rightful income they deserve. It is an act of blatant theft.”

Music distributors plan to strengthen identity verification and rights ownership checks to prevent unauthorized tracks from being uploaded to their platforms. They will also enhance content review to check for copyright violations, fraudulent activity, and possible AI abuse. Companies and users who repeatedly violate regulations will face sanctions, and related information will be shared among the industry.

The “Streaming Integrity Initiative” involves participation from over 12 key record labels and music distributors, including Sony Music, Universal Music, Warner Music, Virgin Music, FUGA, and The Orchard. The participating organizations are calling on other music distribution companies and digital service providers who have not yet joined to participate in this joint response. The aim is to establish a set of minimum common standards across the industry to prevent, detect, and respond to streaming fraud.

This joint initiative is a continuation of the “End Streaming Fraud” campaign, led by IFPI and major music companies to raise awareness of the risks streaming fraud poses to the broader music ecosystem. Some streaming platforms are already working to block fraudulent streams of AI-generated music; Deezer, for example, stated that once fraudulent AI streams are identified, those plays are excluded from royalty calculations.

Some countries have also begun to take enforcement actions. In the United States, a defendant recently pled guilty in the first-ever criminal case involving AI-powered streaming fraud. In Brazil, authorities are cracking down on businesses that sell fake streams, followers, and engagement.

This content was produced with the assistance of AI translation services.