Hi Reader,

You’ve probably noticed that music-tech is at a crossroads.

While mainstream coverage chases surface-level trends, our research reveals four critical shifts that deserve your attention, and that we believe will reshape the business in 2025 and beyond:

Independent music consolidation is accelerating

Universal Music Group turned heads with their recent acquisitions of Downtown Music Holdings, [PIAS], and Outdustry.

Critically, these aren't isolated events. Our analysis has mapped how years-long consolidation of independent music companies is concentrating both market power and valuable data assets in unprecedented ways.

The creative AI hype cycle is declining

Everyone and their mother is launching an AI music tool (we're tracking over 200 of them) — but we've found that only a select few are gaining real traction.

Meanwhile, emerging trends like synthetic data and model attribution are quietly laying the foundation for how rights holders will be compensated in an AI-first era.

The superfan economy is showing cracks

Let's be direct: Current approaches to superfan monetization are creating unsustainable dynamics.

We've mapped the hidden emotional, legal, and structural pitfalls that emerge when artists and platforms prioritize quick wins over lasting relationships. More importantly, we've also unearthed data-driven frameworks for building genuine fan value without fragmenting your community across dozens of platforms.

Investment patterns are shifting dramatically

Suno's recent $125M round represents a fundamental pivot in how value is being created and captured in music-tech — away from traditional streaming platforms, and towards new focus areas like creative tools, live experiences, and community apps.

Founders are securing unprecedented funding without industry backing, rights holders are racing to adapt their licensing models, and traditional power dynamics between tech and music companies are being rewritten in real time.

These developments are exactly why over 1,000 industry leaders — from early-stage founders to major label executives — rely on their Water & Music membership to inform their strategic decisions.

A Water & Music membership gives you:

• Deep-dive analysis that spots critical shifts months before they hit mainstream awareness
• Monthly webinars unpacking emerging trends with the people driving them
• Proprietary databases tracking the companies and trends actually moving the needle
• Special access to online courses, events, and other resources that accelerate your market understanding

Lock in your 2025 membership today at our special holiday rate: Just $120 for a full year (40% off our regular $200 rate) with code FUTURE2025.

This offer expires at 11:59PM EST tomorrow, December 31. (Offer valid for new and reactivated subscriptions only.)

Don’t miss this chance to position yourself for the next wave of music-tech transformation.

See you on the inside!

Best,
W&M Team