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What happens when there’s 100x the content, often indistinguishable from alike content, but demand remains the same?

For the listener I don't think much would change. There is already more music released than any one person has time to listen to.

Edit: or maybe I would be disappointed if I liked an 'artist' but it was an ai so live events would be weird.

Japan has been hosting Hatsune Miku "concerts" for years, so there would be a demand, I suppose.