AI is on a collision course with the music industry. Reservoir's Golnar Khosrowshahi thinks there’s a way through it

Catalog Strategies

Golnar Khosrowshahi, CEO of Reservoir Media, outlines a unique approach to the music industry by acquiring and monetizing existing music catalogs. She explains the distinction between owning copyrights versus master recordings, emphasizing the value in owning the intellectual property of songs like "Take Me Home, Country Roads," which can be monetized across various covers and platforms 1. Khosrowshahi reflects on the acquisition of Tommy Boy Records as a pivotal moment for Reservoir, highlighting the strategic importance of such acquisitions in building a diverse and valuable portfolio 1.

We own copyrights. We own the intellectual property. We own the words and the music.

--- Golnar Khosrowshahi

She also discusses the evolving perception of "selling out" in the music industry, noting that while the stigma has lessened, the challenge remains in maintaining the relevance of older catalogs in a rapidly changing market 2.

   

Creative Balance

Balancing artistic integrity with commercial success is a central theme in Golnar Khosrowshahi's strategy. She acknowledges the commodification of music as both heartbreaking and necessary, as it allows creators to be recognized for their work's long-term value 3. The focus is on enhancing the value of existing assets rather than developing new artists, which Khosrowshahi sees as a more sustainable and less risky approach 4.

There's something heartbreaking in that. Something that someone considers their child...is thought of as an asset.

--- Golnar Khosrowshahi

She emphasizes the importance of creative partnerships tailored to the needs and objectives of artists, aiming for long-term collaboration and growth 4.

   

Future Models

The future of the music industry is shaped by technological advancements and evolving business models. Golnar Khosrowshahi discusses how Reservoir Media views songs as assets, focusing on monetizing them in innovative ways amidst pressures from platforms like TikTok and challenges posed by generative AI 5. She highlights the influx of investment in music catalogs, driven by the perception of music as a stable asset class, even in uncertain economic times 6.

We are all musicians. Somewhere along the way, we are trained. We love music.

--- Golnar Khosrowshahi

Khosrowshahi remains optimistic about the potential for growth and innovation in the industry, despite the challenges 6.