Spotify announced a partnership with Universal Music Group (UMG) to allow fans to use generative AI technology for creating covers and remixes of songs. This AI tool will be a paid add-on available exclusively to Spotify Premium subscribers and will feature a revenue-sharing model with participating artists for the AI-generated music based on their work.
The company did not disclose pricing or a launch date for the new tool, only stating that a licensing agreement with UMG has been reached. Previously, Spotify indicated plans to collaborate with UMG and other major music labels to develop artist-first AI products, emphasizing a proactive approach to consumer demand for generative AI in music.
Spotify clarified that its AI tools will be developed through upfront agreements rather than by seeking permission retroactively. The principles outlined include allowing artists and rightsholders to choose their participation in AI tools and ensuring fair compensation for their involvement.
Alex Norström, Spotify co-CEO, stated, “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.” Sir Lucian Grainge, UMG Chairman and CEO, praised the partnership as an opportunity for artists to enhance fan relationships and generate new revenue streams.
As of now, there are no details regarding which UMG artists will participate in this initiative. Other AI music services, such as Suno and Udio, have faced legal challenges while creating similar tools. In November, Suno settled a $500 million lawsuit with Warner Music Group, shortly after UMG had settled its lawsuit with Udio. Suno continues to face copyright claims from UMG and Sony Music, while Udio is still working through issues with Sony following settlements with Warner and UMG.
The announcement was made during Spotify’s Investor Day, which featured several AI initiatives, including an AI-powered audiobook creation tool and new features for podcasters.
