New Zealand’s music industry is facing one of its most challenging periods in decades, as rising costs, declining music festivals and the rapid emergence of artificial intelligence reshape the future of local artists and the country’s creative economy.
For generations, live music has been the heartbeat of Aotearoa’s music scene. Festivals have provided launching pads for emerging artists, employment for thousands of creatives and technicians, and opportunities for audiences to discover local talent alongside international acts.
Today, that ecosystem is under increasing strain.
Across the country, a growing number of long-standing festivals have been cancelled, postponed or closed altogether as organisers grapple with rising production costs, cautious consumer spending and intense competition from multinational concert promoters. The loss of events such as Splore and the hiatus of other established festivals has reduced opportunities for local performers to build audiences and sustain careers. Industry leaders warn that fewer independent festivals means fewer stages for emerging New Zealand musicians and less diversity in the country’s cultural landscape.
The financial pressures extend beyond festivals. Inflation, higher venue costs, reduced sponsorship and changing audience behaviour have combined to make touring increasingly difficult for independent artists. While international acts continue to draw large crowds, many local musicians are finding it harder to secure sustainable income from live performance alone.
At the same time, the industry is confronting another challenge—one that exists largely online.
Artificial intelligence has become one of the most contentious issues facing musicians worldwide, and Aotearoa is no exception.
Recent investigations found that songs by many New Zealand artists had been scraped into AI training datasets without permission, licences or payment to creators. The revelations have reignited concerns over copyright, intellectual property and whether artists are losing control of the very works that define their careers.
For Māori musicians, the issue extends beyond commercial rights.
Dame Hinewehi Mohi, who serves as APRA AMCOS Director of Māori Membership, has warned that AI scraping represents not only creative theft but also cultural appropriation. She argues that when waiata are removed from their cultural context and absorbed into AI systems without consent, they become disconnected from the whakapapa, stories and identity embedded within them.
The concerns are supported by research commissioned by APRA AMCOS, which found that by 2028, Australian and New Zealand music creators could lose around 23 percent of their income to generative AI unless mandatory licensing and remuneration frameworks are introduced. The research also found that more than three-quarters of Māori creators fear AI will accelerate cultural appropriation, while an overwhelming majority want governments to strengthen copyright protections.
Yet the industry’s relationship with AI is not entirely adversarial.
Many musicians already use AI to assist with production, editing, mastering and songwriting. The debate is increasingly focused on ensuring the technology supports creativity rather than replacing it, and that creators are compensated whenever their work contributes to AI systems.
Despite the challenges, there are also signs of resilience.
The international success of artists including Lorde, Stan Walker, Marlon Williams, Six60, L.A.B., Rob Ruha and a growing generation of te reo Māori artists demonstrates the strength of New Zealand’s creative talent. Recognition of Māori music continues to grow internationally, while initiatives such as Waiata Māori Music Awards, the Aotearoa Music Awards and Māori broadcasting platforms are helping showcase homegrown talent.
Many industry leaders believe the future depends on protecting both the live music ecosystem and the rights of creators in the digital world.
That means ensuring festivals remain viable, strengthening funding pathways for emerging artists, supporting local venues, and modernising copyright laws so that AI innovation does not come at the expense of those whose creativity powers it.
For Māori artists in particular, the conversation is about more than economics. It is about protecting taonga, preserving language and ensuring future generations retain ownership of their stories, songs and cultural identity.
As Aotearoa’s music industry navigates economic headwinds and technological disruption, one thing remains clear: the country’s music is more than entertainment. It is an expression of identity, whakapapa and community—and preserving that legacy may be one of the industry’s greatest challenges yet.
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