Spotify-Kobalt AI Deal, StubHub Kills CA Price Cap - Friday, August 14

Spotify's AI remix tool is gaining publisher momentum, StubHub's $3.4M lobbying effort just killed California's ticket resale cap, and a federal securities fraud suit lands on Selena Gomez and Wondermind. Meanwhile, Midia Research sees recorded music hitting $121 billion by 2033 — and generative AI claiming 38% of music software revenues along the way. Deals & M&A • Spotify signs Kobalt for AI fan-made covers and remixes tool, joining UMG and Merlin. • AEG Presents partners with Creativeman Productions, operator of Japan's Summer Sonic festival. • Suno launches Studio 2.0 browser DAW with MIDI, stem separation, and unlimited downloads. • UMG shares down ~40% over 12 months; HSBC downgrades to "reduce" with €12.10 target. Lawsuits & AI • Federal securities fraud suit filed against Selena Gomez, her mother, and Wondermind co-founder over $1.175M in unaccounted investor funds. • Trump-appointed Kennedy Center board votes to add Trump's name and approve two-year shutdown, defying prior court orders. • Amazon exec admits Twitch AI training must be opt-out because "nobody would opt in." Streaming & Tech • Midia Research forecasts global recorded music revenues reach $121.1B by 2033, up from $74.3B in 2025. • Generative AI projected to account for 38% of music software and services revenues by 2033. • India forecast to become the third-largest music subscriber market globally by 2033. • Spotify India rolling out subscriber rewards to convert free users to paid tiers. Live & Touring • California's Fans First Act — 10% resale price cap — dies in Senate committee after StubHub spends $3.4M lobbying against it. • Anti-bot companion bill AB 1349 survives the same hearing and advances to a California floor vote. • AEG developing two new Japan arenas: 17,000-cap IG Arena and an 18,000-seat Osaka Arena breaking ground in 2027. Artists & Releases • New Music Friday: Ayra Starr, Phoebe Bridgers, Trippie Redd, KATSEYE, Fridayy, and Open Mike Eagle drop albums today. International • Summer Sonic's 25th anniversary runs August 14–16 in Tokyo and Osaka, headlined by The Strokes, Jamiroquai, JENNIE, and David Byrne. • TikTok Music on Stage global emerging-artist competition returns; auditions open August 15 across 20-plus regions. Five minutes, six categories, zero fluff.

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Today is Friday, august fourteenth, twenty twenty six. First up, deals and MA. Spotify signed a licensing deal with Cobalt Music Publishing for its upcoming AI-powered fan-made covers and remixes tool. Cobalt becomes the first publisher outside Universal Music Group to join the program, following earlier agreements with UMG and Merlin. Meanwhile, AEG Presents entered a strategic partnership with Creative Man Productions, Japan's largest independent promoter and operator of SummerSonic Festival. The deal expands AEG's footprint in Japan and gives its access ticketing platform a regional launch pad. And in the software space, Suno launched Studio 2.0, a browser-based digital audio workstation with MIDI support, AI chat capabilities, STEM separation, and unlimited downloads for paying subscribers. The move positioned Suno as a tool for professional producers. On the equity side, Universal Music Group shares closed at €14.65, down roughly 40% over the past year. HSBC downgraded the stock to reduce and set a price target of €12.10, though other analysts remain divided on whether a rebound is in sight. Moving to lawsuits and AI. Investors filed a federal securities fraud lawsuit in Delaware against Selena Gomez, her mother Mandy Tafy, and Wondermind co-founder Daniela Pearson. The suit alleges they concealed the mental health startup's collapse while approximately $1.175 million in investor funds went unaccounted for. The complaint was filed August 13th. And at the Kennedy Center, the Trump-appointed board voted again on August 13th to add Trump's name to the building's entrance and approve a two-year shutdown. Both moves testing a federal judge's prior orders blocking the name change and facility closure. Next up, streaming and tech. Media Research released its 2026 to 2033 forecast for global recorded music retail revenues. The projection $121.1 billion by 2033, up from $74.3 billion in 2025. Streaming will remain the largest driver, but expanded rights, including merchandise, live performance cuts, and brand deals, is becoming the industry's second fastest growing revenue category. On to live and touring. California's AB 1720, known as the Fans First Act, died in the State Senate Appropriations Committee on August 13th. The bill would have capped concert ticket resale prices at just 10% above face value. StubHub spent $3.4 million lobbying against the measure this year alone. Now artist news. Ira Star released Stargirl. Phoebe Bridgers dropped Lost Weekend. Trippy Red put out NDA. K Pop group Cat's Eye released Wild. Rapper Friday released Tension. And Open Mike Eagle collaborated with producer Kenny Siegel on Doomed. Finally, International. SummerSonic's twenty fifth anniversary edition is running August fourteenth through sixteenth across Tokyo and Osaka, headlined by The Strokes, Jamirikwai, Jenny, and David Byrne. The festival timing coincides with the partnership announcement between AEG Presents and Creative Man Productions, reinforcing AEG's push into Japan's live music market. That's your music industry rundown. Have a good Friday.