Endel is an app that generates reactive, personalized "soundscapes" to promote things like focus or relaxation. It takes in data like your location, time, and the weather to create these soundscapes, and the result is not quite "musical" in the traditional sense. It's ambient, layering in things like washed-out white noise and long string notes. It's the type of stuff that's exploded on streaming platforms in recent years under newly invented genre names like "sleep."
Although Endel signed a deal with Warner, the deal is crucially not for "an algorithm," and Warner is not in control of Endel's product. The label approached Endel with a distribution deal and Endel used its algorithm to create 600 short tracks on 20 albums that were then put on streaming services, returning a 50 / 50 royalty split to Endel. Unlike a typical major label record deal, Endel didn't get any advance money paid upfront, and it retained ownership of the master recordings.
Ultimately, the Endel / Warner deal is an inflection point. A major label made the decision to distribute and monetize automated audio, and it got 20 hours' worth of material for relatively little labor and expense that will now live alongside traditional music on playlists that are only viable because of streaming. Other labels will soon follow.
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