The Velvet Sundown Controversy: AI Music, Spotify, and Industry Fallout
In early July, a rock group named The Velvet Sundown drew significant attention across streaming platforms, particularly Spotify. Within weeks of launching, the band amassed over a million monthly listeners and released two full-length albums, with a third slated for release on July 14. However, the band’s growing popularity was quickly overshadowed by controversy after it was revealed that The Velvet Sundown was not a real band made up of human musicians, but rather an AI-generated music project.
Initial suspicions emerged from Reddit users who noticed the band’s sudden appearance in algorithmic playlists and began investigating its origins. Their findings, combined with a vague and stylized online presence, prompted questions about whether the band was real or artificially constructed. These suspicions were confirmed when the band’s own Spotify bio was updated to disclose that the music, vocals, lyrics, and visual content had all been created using AI, under human creative direction.
Spotify's Role and Industry Concerns
The Velvet Sundown's rapid success and verification on Spotify raised immediate concerns about how the platform handles AI-generated content. Spotify currently does not require artists to disclose whether music is created using artificial intelligence. This policy leaves room for synthetic artists to operate without transparency, fueling concerns from artists, rightsholders, and streaming audiences alike.
While Spotify did not initially respond to inquiries about the band, a spokesperson later stated that all tracks on the platform are “created, owned, and uploaded by licensed third parties,” and that the company does not prioritize or financially benefit from AI-generated music. However, the situation has reignited ongoing debates about the role of AI in the music industry and how streaming services may be using such content to reduce royalty payouts.
Deezer Flags the Band, Reaffirms AI Policy
Shortly after the controversy surfaced, competing platform Deezer identified The Velvet Sundown’s album Dust And Silence as “100% AI-generated.” The company emphasized its position on AI use, stating it excludes fully AI-created tracks from algorithmic and editorial recommendations in an effort to protect artist remuneration and ensure user trust. According to Deezer, nearly 20% of music uploads on their platform are now AI-generated—a figure that has doubled in just three months.
Photo Credit: thevelvetsundownband
Industry-Wide Implications
The timing of this revelation is notable. A December 2024 report from the International Confederation of Societies of Authors and Composers (CISAC) projected that music professionals could lose over 20% of their income to AI-generated music by 2028 if regulatory measures are not introduced. In contrast, developers of AI music tools are projected to see their earnings rise dramatically from €0.1 billion in 2023 to €4 billion over the next four years.
These figures align with concerns raised by artists and advocacy groups. Musicians including Nick Cave, Elton John, Kate Bush, and Paul McCartney have publicly urged governments, especially in the UK, to update copyright laws to better protect human creators from the unchecked use of generative tools in music.
The Larger Picture
The Velvet Sundown case has become a focal point in the conversation around artificial intelligence in music. While the project framed itself as an “artistic provocation,” it also served to highlight wider industry tensions around transparency, streaming platform practices, and the protection of creative labor.
As AI-generated content continues to grow in visibility and volume, questions persist about how streaming platforms will balance innovation with responsibility especially when it comes to compensating artists fairly and maintaining listener trust.
Rareform Audio will continue monitoring developments as the conversation around AI and music evolves.
Let’s Collaborate!
Need help building the tone for your production? Hit us up – the Rareform Audio team would love to help you create the perfect soundtrack that speaks to your audience and enhances the power of your visual storytelling to new heights!
A weekly glimpse into the world of music & media with insider news, sync licensing opportunities, creative insight, and discussions.
Rareform Highlights
Black Sheep Music x Rareform Audio lands in Christopher Nolan’s The Odyssey, with music featured in the film’s campaign.
Join our Spotify Playlist and vibe with us! Featuring an array of tunes our team has been listening to.
Why do some sounds feel cinematic while others feel sterile? Small imperfections can add physical detail, texture, and realism to music and sound design. Here’s how controlled imperfection can make audio feel more connected to the world on screen.
SOCAN is suing AI music company Suno in Canada, alleging the platform copied copyrighted songs without permission or compensation. The case adds to a growing number of legal challenges surrounding AI music, copyright and the use of protected works in AI training.
Sony Music has sued Kroger over at least 392 alleged unauthorized uses of its recordings in social media advertising. Here’s what the lawsuit says about music licensing, influencer content, expired licenses, and the $58.8 million figure circulating online.
Hyped to share that our sound design elements were featured in the campaign for Masters of the Universe!
Introducing The Foundry by Rareform Audio, our new line of professional instruments, sounds, and production tools for film composers and record producers. Built from the same sounds, techniques, and real-world experience behind our work across film, trailers, television, video games, and records.
New research from Hong Kong Baptist University suggests that adding 60 to 90 minutes of sleep each night may improve key musical skills, including rhythmic stability, sightreading, and musical memory.
Major record companies are calling for global music charts to establish clearer rules for AI-generated music, with proposed standards centered on human creativity, authorization and legitimate streaming activity.
We are hyped to share that our track Ironwake by Trey Anderson and Nathan Fields was featured in the campaign for The Odyssey. Here's a quick look at the upcoming Christopher Nolan film and the legendary story that inspired it.
Lollapalooza 2026 is underway with sold-out crowds, a diverse lineup, and a renewed focus on artist discovery. As one of the world's biggest music festivals, the event continues to highlight how live performances help emerging artists reach new audiences while reinforcing the lasting impact of established acts.
The recorded music industry has introduced a proposal for standardized AI labels on streaming platforms. As AI-generated music continues to grow, the framework aims to improve transparency by distinguishing between fully AI-generated and AI-assisted recordings while raising new questions about implementation and industry-wide adoption.
The 2026 FIFA World Cup is expanding the role of music with its first-ever halftime show, a global soundtrack strategy, and a partnership with the Recording Academy. As music becomes a bigger part of the tournament's identity, the event highlights the growing connection between the music industry and major international sports.
Our remix of KRS-One's Step Into A World, created by Haukur Karlsson and Nathan Fields, is featured in Trailer 2 for Mutiny. Take a look at the project and learn more about the upcoming action thriller starring Jason Statham.
Music therapy continues to gain recognition as research highlights its role in neurological rehabilitation. New clinical programs and emerging technology are expanding how music supports recovery, reinforcing its growing impact beyond the entertainment industry.
John Denver's "Take Me Home, Country Roads" has become the unofficial anthem of the U.S. men's national soccer team during the FIFA Club World Cup. Here's how the 1971 classic found new life and why legacy songs continue to resonate with audiences around the world.
Benjamin Franklin's glass armonica earned a reputation as one of history's most mysterious musical instruments. From inspiring classical composers to fueling myths about its effects on the mind, its story reveals how unique sounds continue to shape music, perception, and creativity.
Hyped to share that our tracks “Bomb Squad” by Darby Phillips and Nathan Fields, along with “Ambush” by Nathan Fields, were featured in campaigns for Call of Duty: Black Ops 7. From Warzone to the Season 03 Multiplayer Maps campaign, both spots delivered the fast paced energy the franchise is known for.
AI-generated music is filling streaming platforms faster than ever, but new research suggests listeners aren't embracing it. A University of Chicago study found that while AI tracks now make up a significant share of new uploads, the vast majority receive little to no engagement. Here's what the data reveals about music discovery, streaming, and the future of AI in the music industry.
The proposed No Fakes Act has moved one step closer to becoming US law after unanimously passing the Senate Judiciary Committee. As AI-generated voices and digital replicas become more common, the legislation highlights the growing conversation around creator protection, consent, and the future of AI in music.
Warner Music Group is expanding its AI strategy with a new acquisition focused on attribution, transparency, and rights management. As AI-generated music and content continue to grow, the move highlights the increasing importance of tracking how creative works are used in AI training and generation across the music industry.
Hollywood Sound, At Your Command. Learn more about us. Rareform Audio · Rareform PM · Black Sheep Music · The Foundry
New research published in Psychology of Sport and Exercise suggests that fast-tempo music could help people exercise longer. Researchers found that participants listening to music between 120 and 140 BPM improved their endurance by up to 20%, adding new insight into music's growing role in fitness, wellness, and human performance.
A simple sheet of metal may not seem like a groundbreaking production tool, but Steve Forman's legendary steel sheet helped shape the sound of countless film scores. This article explores how unconventional instruments like the steel sheet continue to influence modern music production, sound design, and cinematic storytelling.
Black Sheep Music’s “Divine Intervention” from the BSM74 - Other Worlds album was featured in the final trailer for Disclosure Day. Composed by Haukur Karlsson and Nathan Fields, the track blends cinematic tension and atmospheric sound design built for picture.
The 2026 Golden Trailer Awards winners are here, and we’re excited to share that several projects we contributed to were recognized this year, including Project Hail Mary, Weapons, Tron: Ares, Daredevil: Born Again, and more.
New research from Hong Kong Baptist University suggests that musicians who get an extra 60 to 90 minutes of sleep each night may see measurable improvements in rhythm, sightreading, memory, and focus. The study adds to the growing conversation around performance, recovery, and health in the music industry.
Spotify and Universal Music Group are introducing AI-powered remix and cover tools for Spotify Premium users, marking a major shift in how streaming platforms approach fan-created music. The new licensing agreement could reshape music rights, artist compensation, and AI integration across the industry.
New research from Australia and New Zealand shows that music licensing is evolving beyond legal compliance and becoming a visible marker of brand trust. As customer awareness grows, businesses are learning that licensed music can shape perception, strengthen credibility, and directly influence the in-store experience.
Golden Trailer Awards season is here, and we’re excited to see 29 nominated campaigns featuring contributions from Rareform Audio and Black Sheep Music. From custom trailer remixes to sound design, it’s great to see these projects recognized alongside the talented creative teams behind them.
In a music industry shaped by trends, algorithms, and endless content, standing out has never been harder. This insight explores why originality still matters, how chasing familiarity can dilute creative identity, and why the artists who last are often the ones willing to sound different.
New research is revealing a surprising divide in how listeners respond to AI-generated music. While consumers often rate AI-created tracks highly in blind listening tests, reactions shift once artificial intelligence is disclosed. As AI tools continue to reshape music creation, transparency and listener perception are becoming key factors in the industry’s next chapter.
Rareform Audio
Rareform Audio, an innovative leader in music and audio post-production, specializes in custom music creation, sound design, sonic branding and a vast catalog of diverse genres. Our talented roster of artists, composers and sound designers elevate projects for film, TV, ads, trailers and video games by merging artistry with cutting-edge soundscapes.