Bernstein says AI will boost music industry, not replace artists

Warner Music

14/04/2026 12:04

** Bernstein says it expects AI will enhance rather than displace the traditional music business by emerging as a new monetization layer

** For Spotify SPOT.N, brokerage expects competitive use of AI features enabled by innovative licensing deals to enhance its offerings

** For Warner Music Group WMG.O, brokerage sees AI as a high-margin incremental layer on top of accelerating core streaming and margin expansion

** While generative tools may increase the supply of music in the long tail, the economics of the music industry remain driven by superstar artists, cultural relevance and fan engagement - Bernstein

** Brokerage adds AI music platforms like Suno are still significantly smaller than established services like SPOT, signaling early adoption does not equate to mainstream scale

(Reporting by Jaspreet Singh in Bengaluru)

((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))