As the marginal cost of music production approaches zero, what will be the next true scarcity in the industry? Harvard Business School students recently had the opportunity to explore this question firsthand with Snow Jiang (Snow.J), founder and CEO of Cheerful Music and HBS alumnus. After his first appearance on Boston’s HBS earlier this year, Snow was invited to Harvard Business School’s China Classroom in Chengdu to be a featured case study guest and discuss the future of music in the age of artificial intelligence.
Cheerful Music, the first Chinese music company selected as an official HBS educational case study, presented a session entitled “The Future of AI in the Music Industry.” Snow shared the company’s strategic logic, long-term vision, and structural approach to navigating rapid technological change, providing students with a valuable perspective on music companies thriving amidst AI disruption.
Using AI tools like Suno, more than 7 million new songs are generated every day around the world. Against this backdrop, Snow offered a stark insight: “When music can be generated infinitely, music itself is no longer rare. What is really in short supply is the ability to ensure that the songs are actually heard.” He emphasized that while AI can automate sound creation, it cannot replace human insight into audience emotions, a strategic understanding of the short-form video ecosystem, and the creative intuition needed to break through the content noise. These human-driven capabilities remain central to Cheerful Music’s ability to produce culturally resonant hits year after year.
From “Xiang Si Yao,” which sparked a global wave of interest in classically-inspired aesthetics on its short-form platform and racked up more than 50 billion views, to its recent viral hit “Luo Le Bai,” which included a user-driven dance challenge, Cheerful Music has proven that even in an era of oversupply, strategic human creativity is still a competitive advantage. During the discussion, students asked about rising advertising costs as competition for attention intensifies. Mr. Snow answered frankly: “Promotion now costs about four to five times more than it did five years ago to achieve the same level of effectiveness.” Another student said, “The transferable value of this business model is not the music itself. The music is just the surface. At its core, the model connects people who share similar lifestyles and emotional resonance through a powerful distribution medium.” This observation reflects Cheerful Music’s philosophy that while AI can generate sound, lasting value is created through human connections.
Cheerful Music is developing a unique AI music vertical model that addresses the copyright and licensing issues that often limit AI tools. The company ensures that all content produced is legally safe and commercially viable by enabling modular decomposition and recombination of melodies, arrangements, and vocals. This is a structural solution for sustainable growth of AI music. Snow also highlighted the company’s evolving virtual artist strategy. Rather than replacing human performers, virtual artists serve as visual communicators of music, amplifying discovery and memory by combining auditory and visual experiences. In this framework, virtual artists become long-term creative assets within an AI-enabled ecosystem.
Cheerful Music’s global ambitions were a key discussion point. Students were interested in why London was chosen as the company’s first overseas market. Using the CAGE framework (cultural, administrative, geographical and economic distance), Snow cited the UK’s rich musical heritage, global linguistic reach and cultural openness as factors that make the UK an ideal bridge market for cross-cultural collaboration. In 2025, Cheerful Music’s international momentum continues to grow. The company has entered into a strategic partnership with Sony Music for distribution and content development, hosted the first international songwriting camp in Chengdu and Shenzhen, performed at The Great Escape in the UK and Amsterdam Dance Event (ADE), and became the only Chinese music company to host an independent stage. Looking ahead, the company plans to exhibit at SXSW 2026, fostering cross-market collaboration and engaging with global industry leaders on new models of creativity, technology and distribution.
From traditional rights operations to AI-driven ecosystems, and local hits to global collaborations, Snow’s HBS session highlighted how music companies can serve as connectors in the AI era. In a world of infinite content, relevance is no longer defined by origin, but by meaningful connections, shared resonance, and the ability to create sustainable creative value.
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