Douglas Delannoy
Focus No. 11 October 2026, 10 min read, Topic Technology

€7 million. And no victims?

Streaming fraud and AI: the Michael Smith case, and what it reveals about how music revenue is shared.

Douglas Delannoy
Behind every performance, an artist.

The facts · The Michael Smith case

Bots listening to music for 7 years

From 2017 to 2024, Michael Smith, 54, a musician from North Carolina, had hundreds of thousands of tracks generated by AI, then had them played on a loop by automated accounts on Spotify, Apple Music, Amazon Music and YouTube Music. He pleaded guilty to fraud in March 2026 before the federal court in New York.

  1. GenerateHundreds of thousands of tracks created by AI.
  2. StreamUp to 661,440 plays a day, by bots.
  3. Cash inNearly €7m ($8m) in royalties captured.
18 monthsin prison, then 2 years of supervised release and forfeiture of more than $8mUpdated 10/2026Sentence handed down on 06/10/2026
46 to 57 monthsin prison under the federal guidelinesWhat the guidelines provided
24 monthsin prison recommended to the judgePre-sentence report
His defenceIt argued that no artist or songwriter had suffered any perceptible harm, and asked for probation, without prison.
Sources

Indictment, SDNY, 24 Cr. 504 – SDNY press release, 19/03/2026 – SDNY press release, 06/10/2026 – WSOC-TV, 21/03/2026 – Music Business Worldwide, 25/09/2026

The facts · A spreading fraud

Up to 85% of plays of fully AI-generated tracks came from bots

On Deezer in 2025, all these fake plays were excluded from the calculation of payouts.

Out of 100 plays of an AI track (Deezer, 2025)

Streaming bots85
Real people15
75 million“spammy” tracks removed by Spotify in twelve months (mass uploads, duplicates, tracks under 30 seconds)Spotify
1 to 3 billionartificial plays in France in 2021, or 1 to 3% of the total, before the AI waveCNM
Sources

Deezer Newsroom, 21/07/2026 – Music Business Worldwide, 25/09/2025 – CNM, study on stream manipulation, January 2023

The facts · “No real victims”? The harm

Every fake play is paid for with real money

A year of Spotify Premium in France costs €145.68. The State takes €24.28 in VAT, which leaves €121.40 to share.

How an annual subscription is shared (estimate)

Without fraudWith 3% artificial plays
Producers€53.42€51.81
Performers€13.35€12.95
Songwriters and composers€12.14€11.78
Music publishers€6.07€5.89
Platform (streaming service)€36.42€36.42
Fraudsters€0€2.55
€2.55 per subscriber per year captured by fraudstersThe platform keeps its share. It is the rightsholders, performers included, who bear the cost of fraud.
Sources

Price €12.14 a month (AnimaPro, 14/04/2026) – VAT 20% – shares as orders of magnitude, contracts vary (Spotify pays out 70%, UNESCO 2023, Sacem distribution rules, statutory three-way split) – 3% fraud, top of the CNM 2023 range

Exploitation · On the ground, a deluge

106,000 tracks released every day

On the platforms in 2025, up from 99,000 in 2024, or one new track every 0.8 seconds.

253 milliontracks in the platforms' catalogue at the end of 2025, accumulated since they began (+18% in a year)Luminate

Out of 100 tracks in the catalogue, in 2025

More than 1,000 plays12
1,000 plays or fewer88
Sources

Luminate, 2025 annual report, reported by Hypebot on 20/01/2026

Exploitation · AI's share, who measures it?

Only one platform publishes its rate

Deezer, in France, publishes the share of new releases generated by AI. No other platform publishes a rate.

AI share of new releases on Deezer (%)

01/202510%
04/202518%
09/202528%
11/202534%
04/202644%
06/2026more than 50%

United States

Apple Music, Amazon Music, YouTube Music, Tidal. No rate published.

Sweden

Spotify. No rate published, 75m spam tracks removed in a year.

France

Deezer. More than 50% of new releases generated by AI.
Sources

Deezer Newsroom, 09/2025, 04/2026 and 21/07/2026 – MBW 12/11/2025 and 25/09/2025 – no other public rate as of 28/09/2026

Exploitation · And for the artist?

Nearly 3,000 plays for €1, to be shared

€1 paid by the producer for around 3,000 Spotify plays, depending on the contract, and shared if there are several artists (estimate).

87%of tracks stayed below 1,000 plays a year on SpotifySpotify
0.1%of artists earned more than €86,000 on Spotify in 2025, out of some 13 million who released at least one trackSpotify
Sources

Orders of magnitude: Muzisecur, 2026 rates (0.35 cents per Spotify play) – GRM agreement of 12/05/2022 – Spotify, Loud & Clear 2026 – MBW 11/03/2026 – Disc Makers via Hypebot, 04/2025 (disputed by Spotify) – ECB rate of 01/09/2026 (€1 = $1.159)

Exploitation · The market, who streams, who gets heard?

5 platforms hold 79% of subscribers

Share of the 921.6 million paying subscribers at the end of 2025. Three of the five leaders are American. Deezer has 3.8 million direct subscribers in France.

Share of paying subscribers, end of 2025

Spotify (Sweden)31.4%
Tencent Music (China)13.8%
Apple Music (United States)12.6%
YouTube Music (United States)12.4%
Amazon Music (United States)8.5%
Deezer (France)≈ 1%
Others, including NetEase≈ 20%
5,100 bnaudio streams worldwide in 2025
31%of music listening time goes through video
€6.9bnpaid out by YouTube in 12 months, against €9.5bn by Spotify in 2025
≈ 1%of Universal's revenue came from TikTok in 2024. Meta publishes nothing
Sources

MIDiA via MBW 16/06/2026 – Deezer, 9.1m subscribers at the end of 2025 (share calculated) – Luminate 2025 – IFPI 2023 – MBW 23/10/2025 (YouTube) – Spotify Loud & Clear 2026 – Fortune 31/01/2024 – ECB rate 01/09/2026

The law · Milestones, the law's board game

Two and a half centuries to move forward 6 squares

Each square is a major step that opened up a form of remuneration, with the wait before the next one.

  1. 1777 · Authors' rightsBeaumarchais founds what will become the SACD. Then a 14-year wait.
  2. 1791-1793 · Authors' rightsThe first laws on authors' rights. Then 58 years.
  3. 1851 · Authors' rightsSacem collects and distributes. Then 106 years.
  4. 1957 · Authors' rightsA share proportional to revenue (Adami 1955, Spedidam 1959). Then 28 years.
  5. 1985 · Neighbouring rightsThe Lang law creates neighbouring rights (SCPP 1985, SPPF 1986). Then 23 years.
  6. 2008 · StreamingPaid streaming arrives. Then 18 years.
  7. 2026? · AINo remuneration provided by law.
Sources

Légifrance (laws of 1791, 1793, 1957, 1985) – SACD – Sacem – Adami – Spedidam – SCPP – SPPF – SNEP, 2025 review

The law · Close-up, the opt-out

A right to say no, with no way to check

What it allows

Refusing the training of an AI on your works and performances without consent. Opening a negotiated licence with AI providers. Binding them through the AI Act, which requires a public summary of training data.

What it does not do

Nothing for models trained before the opt-out. No independent audit of the data actually used. No check on generated tracks, voice and style included.
Who checks?Today, the artist and the rightsholder, alone and at their own expense. Institutions lack the technology needed to monitor compliance, AI against AI. What is needed is an independent, properly equipped third party, and the presumption of use.

Blind spot, plagiarism

An AI track too close to a work is still plagiarism, but proving it requires knowing the training data. GEMA won its case against Suno in Munich in July 2026, at first instance.

Blind spot, the “feat.”

A cloned voice presented as a featured artist escapes the opt-out. It falls under personality rights and platform rules, which Spotify tightened in September 2025.
Sources

CPI art. L.122-5-3 and L.211-3 8° – Directive (EU) 2019/790 art. 4 – AI Act art. 53 – Music Business Worldwide, 31/07/2026 (GEMA v Suno) and 25/09/2025 (Spotify)

Oversight · Who checks today?

4 stages, no independent oversight

  1. Train

    AIs trained on entire catalogues. The companies behind these music generators, such as Suno, Udio or OpenAI, do not publish the list of works used.
    Who checks? The artist and those around them, alone. The opt-out is not monitored by an independent third party.
  2. Release

    106,000 tracks released every day. On Deezer, more than half of new releases are generated by AI.
    Who checks? Deezer detects and labels AI tracks. Elsewhere, labelling relies on self-declaration.
  3. Audit

    1 to 3% artificial plays in France as early as 2021, up to 85% on fully AI-generated tracks.
    Who checks? Each platform on its own, with no outside oversight.
  4. Pay out

    Around €2.55 per subscriber per year captured by fraud (estimate).
    Who checks? The platform alone. Nothing is published.
The answer will come through innovation.
Sources

AI Act art. 53 – Luminate 2025 – Deezer Newsroom, 21/07/2026 – CNM, January 2023 – detailed estimate in the “The harm” section

The stakes

3 requirements

Facts, exploitation, law, oversight. Everything comes back to these three requirements.

Traceability

Knowing where each track comes from, human or AI, and what happens to its plays, from upload to payment.

Integrity

Only real plays, by real people, count in the share-out.

Respect

No use of a work, a performance, a voice or a name without the person's consent.

Outlook · Levers for change

Control, from training to remuneration

Who can act? Law: the legislator, in France or the EU. Contract, licence: agreements between producers, distributors, platforms and rightsholders.

  1. Train

    The opt-out makes training subject to authorisation, and so to a licence, provided use can be proven. With the presumption of use, it would be up to the AI provider to show that it did not use a work. Updated 11/2026Passed by the Senate, it is due to be debated in the National Assembly chamber on 19/11/2026. Alongside this, an independent audit of training data.
    Law (France, EU)
  2. Release

    Identify what is paid for and what is not, by requiring an independent automated audit that tells fully AI-generated tracks apart from human works, whether or not they were made with the help of tools.
    Distributor–platform contract
  3. Audit

    Remove fake plays (bots) before payouts are calculated, with the same detection principle on every platform, and create an offence of stream manipulation.
    Platform–rightsholder licence + law
  4. Pay out

    Share the information by publishing the number of plays removed, then pay the recovered sums back to the rightsholders harmed.
    Platform–rightsholder licence
Sources

French and European framework, rules differ outside the EU – CPI art. L.211-3 8° – Senate, presumption bill, 08/04/2026 – National Assembly, report no. 2864 (02/06/2026) and agenda for 19/11/2026 – AI Act art. 50

Outlook · The law forecast · outlook at 29/09/2026

Decisions expected here and elsewhere

FranceBlockedPresumption of use blocked in the National Assembly
European UnionIn forceAI Act: AI content labelled since 08/2026
ItalyIn forceAI law: human input required, unlawful mining a criminal offence
United KingdomOn holdOpt-out dropped, no timetable
United StatesUnder discussionNO FAKES Act (voice, likeness) passed in committee
BrazilUnder discussionAI bill passed by the Senate, pending in the Chamber
IndiaUnder discussionMandatory licence with royalties proposed
ChinaIn forceLabelling of AI content, audio included
JapanNo rules yetAI training broadly permitted
AustraliaIn forceTraining exception rejected
Sources

National Assembly – AI Act art. 50 – Italian law 132/2025 – UK government, 18/03/2026 – S.4591 (US) – PL 2338 (Brazil) – DPIIT (India) – CAC (China) – art. 30-4 (Japan) – Australian government, 27/10/2025

Test yourself on this topic1 question in Quiz No. 1 is about this publication: artificial streams.
Take the quiz →

Read next All publications →