From Taylor Swift and Beyoncé to blockchain and AI: Music ETF CEO eyes the subsequent huge factor

David Schulhof, founder and chief govt of the MUSQ Global Music Industry ETF
MUSQ,
advised MarketWatch that he’s in no way shocked by the extent of consideration that these excursions have garnered. “People really want live music,” he stated. “There’s nothing that can replicate the live-music experience.”

Related: Sphere Entertainment’s inventory climbs after Sphere venue opens with gorgeous U2 live performance

The MUSQ ETF, which was launched in July, has about 50 holdings, spanning streaming, content material and distribution, reside music, satellite tv for pc and broadcast, and gear and know-how. One of the fund’s high holdings is Sphere Entertainment Co.
SPHR,
+3.21%,
proprietor of Sphere, the brand new 360-foot-tall immersive live performance and leisure venue in Las Vegas. Irish rock giants U2 kicked off a 25-show residency at Sphere on Friday with a surprising live performance.

“It’s just really exciting for live music — anybody that really enjoys live music is really going to enjoy this venue,” Schulhof advised MarketWatch. Buoyed by Friday’s opening, Sphere shares ended Monday’s session up 11.11%, their greatest single-day share achieve since Feb. 9, after they gained 11.68%.

Other holdings within the ETF embody media know-how firm Avid Technology Inc.
AVID,
+0.07%,
Dolby Laboratories Inc.
DLB,
+0.95%,
Sonos Inc.
SONO,
-1.03%,
Live Nation Entertainment Inc.
LYV,
+2.68%,
 Madison Square Garden Entertainment Corp.
MSGE,
+0.03%,
Sirius XM Holdings Inc.
SIRI,
-1.14%
and European ticketing large CTS Eventim AG & Co
EVD,
-0.97%.
The fund at present has $11.7 million in belongings underneath administration.

Related: A $35,000 journey to see Taylor Swift? How the artist’s followers boosted the Los Angeles financial system by $320 million.

Schulhof, who’s the previous president of music publishing at digital media firm LiveOne Inc.
LVO,
+5.21%,
sees AI and blockchain as the subsequent huge issues within the music business. “AI is revolutionizing creativity and productivity for artists today,” he stated. “All kinds of tools are available now to create new music for their fans.”

Earlier this yr, news that the Beatles are utilizing AI to incorporate John Lennon’s voice on a brand new track divided followers of the long-lasting Liverpool band, and left musicians weighing the impression of the know-how.

Schulhof famous that AI may very well be utilized to the music “stems,” or particular person audio tracks, which are used to create full songs. “By accessing these stems, they can create new works,” he stated.

As Beatles ‘go AI,’ musicians weigh impression: ‘Lennon wouldn’t be finest happy’

The MUSQ CEO acknowledged the challenges that AI can pose to the music business, as evidenced by the controversy attributable to an AI-generated track that used cloned voices of Drake and The Weeknd. The two greatest threats posed to the music business by AI are piracy and market dilution, he added.

“I think that the benefits [of AI] are far more exciting than any of the risks.” Schulhof stated.

With regard to blockchain, Schulhof sees alternatives for artists to strengthen relationships with their followers by means of the likes of NFTs. Blockchain know-how can be used to hurry up funds to artists, in line with Schulhof, who notes that, in the intervening time, it’s common for an artist to attend 9 months for fee after a track has appeared on the radio. “[Blockchain] takes out the middleman,” he stated.

Opinion: The Beatles are utilizing AI to incorporate John Lennon’s voice on a brand new track: Why I don’t wish to hear it

Blockchain, which has grown in reputation in recent times, is a decentralized digital ledger of transactions. The know-how is used to underpin cryptocurrencies akin to bitcoin.

“AI and blockchain is really transforming the music industry,” Schulhof stated.