Sir Lucian Grainge's 2026 memo: AI, superfans, and a firm line on artist value
UMG's chief set the tone for 2026 with a clear message: responsible AI is in, exploitative models are out. He warned against deals that devalue artists and flood platforms with "AI slop," and said UMG won't back business models that underpay or sideline human creators.
This arrives while UMG continues legal action against AI music generator Suno, even as other companies chose to license. Sony Music, GEMA, and Koda are also in active litigation. The signal is unmistakable: consent, credit, and compensation are non-negotiable.
UMG's AI stance: engage, innovate, protect
Grainge rejected two extremes: ignoring AI entirely or accepting any model regardless of ethics. UMG's path is deal-first and guardrail-heavy-agreements with YouTube, Meta, TikTok, KDDI, Udio, BandLab, Soundlabs, KLAY Vision, Splice, and Stability AI were struck in 2025.
He also announced a multi-year alliance with NVIDIA to reimagine creation, discovery, and fan engagement-through tools and experiences that include safeguards, attribution, and copyright respect.
"UMG will not stand by and watch irresponsible business models take hold-models that devalue artists and fail to provide adequate compensation."
Streaming 2.0: cleaner royalty pools, smarter tiers
UMG implemented Streaming 2.0 deals with Amazon, Spotify, and YouTube in 2025, with more expected this year. These agreements push for better segmentation, higher ARPU, and geographic growth.
Crucially, UMG anticipated the spike of irrelevant uploads and AI "slop," and added provisions so that this content doesn't get counted in the same royalty pools as its artists and songwriters. Translation: less dilution, fairer splits.
2026 focus areas that matter to creatives
- Superfans and premium tiers: Expect enhanced superfan tiers with DSPs and new platforms built around special events and products-both virtual and IRL. UMG is scaling retail stores (Tokyo, Madrid, New York, London) and experiential hospitality to bring fans closer.
- Independent services: UMG plans to expand services for indie labels and entrepreneurs, supported by the anticipated closing of its Downtown Music acquisition (under review by the European Commission). More flexible structures and support for founders are on the way.
- Global expansion: More signings and deals across Africa, China, India, and Southeast Asia. Universal Music India's new minority stake in Excel Entertainment opens more doors for original soundtracks and cross-market breakout moments.
What this means for your career and catalog
- Use AI with consent and documentation: If you're experimenting, stick to licensed tools and services that guarantee attribution and royalty flows. Keep clean stems and session data for future opt-in opportunities.
- Protect your rights upfront: Tighten splits, metadata, and registrations. Enforce credits and ISRC/ISWC consistency to prevent misallocation in Streaming 2.0 systems.
- Design superfan offers now: Limited runs, vinyl variants, behind-the-scenes drops, VIP livestreams, private listening sessions. Price for value, not volume.
- Prep for premium tiers: Create formats that justify higher spend-director's cut albums, long-form commentary tracks, live-in-studio sessions, stems access, and collectible moments.
- Label AI use clearly: If you blend AI into your workflow, tag it and keep credits human-forward. Avoid models trained on unlicensed data.
- Grow D2C: Build a direct list, tighten your online store, and sync drops with local IRL moments. Use retail and events to turn casuals into collectors.
- Track policy shifts: Lawsuits and platform rules will change how AI music is made and paid. Favor ecosystems that prove respect for consent, credit, and compensation.
Quick scorecard from 2025
UMG artists dominated major platforms: multiple Top 5 and Top 10 placements across Spotify, Apple Music, Amazon Music, TikTok, and Deezer. From global Artist of the Year wins to chart-topping albums and viral catalog tracks, the catalog and frontline both delivered. The takeaway: demand for high-quality, human-led music is strong-and rewarded.
Why this memo matters
For creatives, the path is clear. Lean into AI that respects your work. Build for superfans, not algorithms. Keep your rights airtight. UMG is drawing a firm line against garbage content and weak payouts-use that momentum to negotiate better terms and create formats people will pay more for.
Helpful links
- NVIDIA - partner named in UMG's AI alliance
- Curated AI courses by job - practical training to build ethical, market-ready AI workflows
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