Spotify announced a partnership with Universal Music Group (UMG) to enable fans to use generative AI to create song covers and remixes. The new tool will be a paid add-on for Spotify’s Premium subscribers, with artists receiving a revenue share for the AI-generated music based on their work. Pricing and a launch date were not disclosed.
The licensing agreement aligns with Spotify’s previous collaborations with music groups, including Sony Music Group, Warner Music Group, Merlin, and Believe, aimed at developing artist-first AI products. Spotify stated that the AI tools would be created through “upfront agreements,” allowing artists and rightsholders to choose their participation and ensuring fair compensation.
Spotify co-CEO Alex Norström emphasized the initiative’s focus on consent, credit, and compensation for artists and songwriters. “Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next,” Norström said. UMG Chairman and CEO Sir Lucian Grainge noted that the development would help artists deepen relationships with fans and create new revenue opportunities. Specific UMG artists participating in the initiative have not yet been disclosed.
Other companies in the AI music sector, such as Suno and Udio, have faced legal challenges regarding their music tools, leading to lawsuits from major labels. In November, Suno settled a $500 million lawsuit with Warner Music Group, while UMG reached a settlement with Udio. Suno continues to address copyright claims from UMG and Sony Music, while Udio is in negotiations with Sony.
Recognizing consumer demand, Spotify sought a direct deal with music labels to facilitate this initiative. The announcement coincided with Spotify’s Investor Day, where the company also unveiled plans for an AI-powered audiobook creation tool, AI features for podcasters, a desktop app for personal podcasts, and reserved concert tickets for top fans.
