Spotify, Universal Music agree on fan-made AI remixes

Spotify said on Thursday it has reached a licensing agreement with Universal Music Group that will let Premium subscribers use generative AI to make covers and remixes of songs they like. The tool will be offered as a paid add-on, and artists who take part will share revenue from the AI-generated music based on their work.

The company did not disclose pricing or a launch date. It had already said last year that it was working with Universal Music Group, Sony Music Group, Warner Music Group, Merlin and Believe on artist-first AI products.

Spotify had described those AI tools as being built through “upfront agreements, not by asking for forgiveness later,” a clear swipe at other players in the space, including Suno. Among the principles it set out were that artists and rightsholders should be able to choose whether and how they participate, and that they should be fairly compensated if they do.

“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.”

Sir Lucian Grainge, UMG’s chairman and CEO, said the development would help artists deepen their fan relationships while also creating additional revenue opportunities. The company has not said which UMG artists have agreed to participate.

Spotify’s move comes after services such as Suno and Udio pushed ahead in the AI music space on shaky legal ground, and the major labels quickly sued. In November, Suno settled a $500 million lawsuit with Warner Music Group, shortly after Universal Music Group had settled its own suit with Udio.

Suno still faces copyright claims from UMG and Sony Music, among others. Udio has settled with Warner Music and UMG, but is still working to settle with Sony.

Spotify said it went directly to the labels for its own deal after seeing consumer demand for this type of activity. The company did not say outright whether UMG would be the first of more label partnerships.

The announcement was part of a series of Investor Day updates from Spotify on Thursday. Those also included an AI-powered audiobook creation tool, AI-powered features for podcasters, a desktop app to produce personal podcasts via AI, and reserved concert tickets for top fans.