Spotify, UMG Strike Deal Allowing Fans to Create AI-Driven Covers, Remixes

Spotify and Universal Music Group (UMG) have signed recorded music and music publishing licensing agreements enabling Spotify users to create AI-generated covers and remixes of songs from participating artists and songwriters.

Why it matters:

• Spotify says it’s had the technology to allow fans to create AI-generated remixes and covers for some time, but not the rights framework.

• This deal changes that, and may well offer a rights blueprint that can be rolled out more widely among other labels.

• It marks another step in the music industry’s navigating of AI and its artistic and revenue-generating possibilities.

The details:

• The tool will exist as a paid add-on for Spotify Premium users, though no details of pricing or launch date have been revealed.

• The press release offers little detail around the technical logistics, other than saying it will be powered by generative AI technology.

• Artists can participate on an opt-in basis, with the tool available only for songs and artists who have agreed to be involved.

• The companies say it introduces “a creation model where artists and songwriters can directly share in the value generated through AI-driven licensed covers and remixes on the Spotify platform.”

What they said:

• Alex Norström, Co-CEO, Spotify: “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. Through each technological transformation, we have worked together with Sir Lucian [Grainge, Chairman and CEO, 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.”