Spotify announced on Thursday that it has partnered with Universal Music Group to allow fans to use generative AI to create covers and remixes of their favorite songs. The tool will be launched as a paid add-on available to Spotify’s Premium subscribers. It will also offer a revenue share with participating artists for the AI-generated music based on their work.
Spotify mentioned the two companies had come to a licensing agreement, but did not mention a pricing plan or a launch date. However, it had mentioned last year that it was working with Universal Music Group, Sony Music Group, Warner Music Group, Merlin, and Believe to develop artist-first AI products.
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Spotify said that artists and rightsholders should be able to choose if and how they participate in AI tools, and if they do, they should be fairly compensated. “Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next. What we’re building is grounded in consent, credit, and compensation for the artists and songwriters that take part,” said Spotify co-CEO Alex Norström in a statement about the UMG agreement.
“Through each technological transformation, we have worked together with Sir Lucian [Chairman & CEO, Universal Music Group] and his team to evolve the music ecosystem into a richer, more beneficial experience for fans and a more rewarding outcome for artists and songwriters,” he added.
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Meanwhile, UMG Chairman and CEO Sir Lucian Grainge mentioned that this development was a way for artists to deepen their fan relationships while also creating additional revenue opportunities. It’s not yet known which UMG artists have agreed to participate.
Cautious about such legal risks, Spotify chose to negotiate directly with record labels for its own agreement. The development was among several announcements made during Spotify’s Investor Day, where the company also unveiled an AI-powered audiobook creation tool, new AI features for podcasters, a desktop app for creating personalized podcasts using AI, and reserved concert tickets for top fans.