Music
Reservoir Media Reports Strong Quarterly Growth.
Sony Expands Its Music Catalogue as New EU AI Rules and Reservoir Media Highlight the Future of Music Rights
The global music industry continues to evolve as music rights, catalogue ownership, artificial intelligence, and digital distribution become increasingly valuable. This week, three major developments demonstrate how publishers, record companies, and regulators are shaping the future of the music business.
Sony Music Publishing has completed a significant catalogue acquisition, the European Union's AI Act has entered a new phase with transparency requirements for AI-generated content, and Reservoir Media has reported strong financial growth driven by publishing, recorded music, synchronization, and catalogue expansion.
As a company based in the Kurdistan Region, Art City closely follows international developments in music distribution, publishing, copyright, artificial intelligence, and digital rights to help artists, labels, and rights holders stay informed.
Sony Music Publishing Completes Major Catalogue Acquisition
Sony Music Publishing has officially completed its acquisition of Recognition Music Group's music catalogue following regulatory approval.
The acquisition adds more than 45,000 songs to Sony's publishing portfolio, including interests in works associated with globally recognised artists such as Fleetwood Mac, Beyoncé, Rihanna, Lady Gaga, and many others.
The deal reinforces the growing value of music catalogues as long-term assets capable of generating revenue through streaming, publishing royalties, synchronization licensing, cover recordings, film and television placements, and commercial licensing.
As investment in music rights continues to increase, ownership of high-quality catalogues remains one of the industry's most important business strategies.
EU AI Transparency Rules Officially Take Effect
From 2 August 2026, Article 50 of the European Union AI Act officially entered into force, introducing new transparency requirements for certain AI-generated and AI-manipulated content.
The new rules require providers and deployers of relevant AI systems to ensure synthetic content can be detected and, in specific situations, clearly disclose deepfakes and AI-generated material.
The wider AI Act also introduces copyright-related responsibilities for providers of general-purpose AI models. However, the legislation does not completely prohibit AI training using copyrighted material, meaning rights holders must continue monitoring the use of their works and pursue infringements when necessary.
For artists, record labels, publishers, and distributors serving European audiences, maintaining accurate documentation—including AI involvement, voice permissions, recording consents, training-data licences, and ownership records—is becoming increasingly important for both contractual and regulatory compliance.
Reservoir Media Reports Strong Quarterly Growth
Independent music company Reservoir Media reported $41.5 million in quarterly revenue, representing 12% year-over-year growth.
The company achieved:
• 6% growth in music publishing revenue.
• 35% growth in recorded music revenue.
• 23% growth in digital recorded music revenue.
• 54% growth in physical music revenue.
• Synchronization revenue increasing from $0.3 million to $1.4 million.
• Adjusted EBITDA rising 13% to $15.7 million.
Alongside its financial results, Reservoir continued expanding its catalogue through the acquisition of Nacional Records and Canciones Nacionales, strengthened its position in Latin music, and signed a publishing agreement covering both the existing catalogue and future works of rapper T.I.
The results demonstrate how independent music companies can successfully combine publishing, recorded music, synchronization, catalogue acquisitions, and regional expansion to achieve sustainable growth.
What These Developments Mean for the Music Industry
Although these announcements come from different organisations, they all reflect the same long-term industry trend.
Music rights have become one of the entertainment industry's most valuable assets. Companies are investing heavily in catalogue acquisitions, regulators are introducing clearer AI transparency requirements, and independent publishers continue expanding through strategic acquisitions and diversified revenue streams.
For artists, record labels, publishers, and distributors, long-term success increasingly depends on effective catalogue management, strong rights administration, regulatory compliance, and diversified income from streaming, synchronization, publishing, and licensing.
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Art City's Perspective
At Art City, we closely monitor international developments in music distribution, publishing, copyright, artificial intelligence, and digital rights. As a Kurdish company based in the Kurdistan Region, we believe that effective rights management, transparent metadata, and strategic catalogue development are becoming essential for artists and labels seeking sustainable growth in the global music industry.
Frequently Asked Questions
Why did Sony Music Publishing acquire Recognition Music Group?
Sony expanded its publishing portfolio by acquiring more than 45,000 songs, strengthening its catalogue and long-term royalty income.
What changed under the EU AI Act?
From 2 August 2026, new transparency requirements require certain AI-generated and synthetic content to be identifiable and disclosed in specific situations.
Does the EU AI Act ban AI training using copyrighted music?
No. The legislation introduces transparency and copyright-related obligations but does not completely prohibit AI training on copyrighted works.
Why is Reservoir Media's financial growth significant?
Its results demonstrate how independent music companies can grow by combining publishing, recorded music, synchronization, catalogue acquisitions, and expansion into emerging markets.
Why do these stories matter?
Together, they highlight three major trends shaping the music industry: growing investment in music catalogues, stronger AI transparency and compliance requirements, and the increasing importance of diversified music rights revenue.
