Spotify and Universal Music Group have revealed an agreement for a new feature that allows premium subscribers to make AI-generated covers and remixes of songs.
The new feature, which wasn’t given a release date, was revealed during Spotify’s investor day on Thursday, available for subscribers and only for music from participating artists and songwriters. UMG and Spotify are touting the feature as a new revenue driver for music creators as they profit from the streams the fan-made content generates.
“Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next,” Spotify co-CEO Alex Norström said in a statement. “What we’re building is grounded in consent, credit, and compensation for the artists and songwriters that take part. Through each technological transformation, we have worked together with Sir Lucian [Grainge, CEO of UMG] 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.”
Spotify didn’t share details about how the cover feature works, or what artists would be participating in the new feature, though Norström added later that the company welcomes all artists to take part in this. UMG is the world’s largest music company, and its roster of artists and songwriters includes Billie Eilish, Taylor Swift, Sabrina Carpenter and Post Malone among many others.
Spotify did not release details on how this would impact its finances, other than to say it would be “accretive.”
“We have created the first alternative here for fans to create remixes and covers,” Norström said during the investor presentation.
“It’s largely an untapped opportunity, because there isn’t really a skilled way to make money on it, and what we did today was basically to unlock that opportunity,” he added. “I think this is going to be additive both to artists, songwriters, the community at large, Spotify rights holders, and so on.”
The feature is one of Spotify’s most significant AI developments to date and comes about seven months after the company announced it had entered agreements with all of the major record companies to develop AI music products. How Spotify handles AI content on the platform has been a subject of significant discussion as listeners online have been vocal about their frustration with AI slop on streaming services. Spotify hasn’t outlawed AI on its service, though the company introduced AI tagging this year, and the company said last year that it had removed 75 million spammy songs.
For UMG, the licensing deal with Spotify is just the latest in its AI strategy. The company had previously established AI deals with the likes of AI music generator Udio, Splice and Nvidia.
“The most valuable innovations in the music business always bring artists and fans closer together,” Grainge said in a statement. “That principle is at the heart of this pioneering AI-enabled superfan initiative, which is designed to support human artistry, deepen fan relationships, and create additional revenue opportunities for artists and songwriters. Building on our long track record of leading the industry through technology changes, and collaborating with Alex, Gustav, Daniel and the team at Spotify, this initiative is firmly artist-centric, rooted in responsible AI, and will drive growth for the entire ecosystem.”
– Caitlin Huston contributed to this report.
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