Spotify has signed a licensing agreement with Merlin for an upcoming AI tool that will let users create covers and remixes using music from participating artists. The partnership brings more than 30,000 independent labels and distributors into the project alongside Universal Music Group.
Spotify said the product will require consent from artists and songwriters before their work becomes available. Participating rights holders will also receive attribution and compensation when users create or listen to authorised versions of their music.
Merlin Expands the Available Music Catalogue
Merlin represents independent music companies around the world and negotiates licensing agreements on their behalf. Labels covered by its Spotify agreement will be able to decide whether their artists and songs participate in the new tool.
Spotify and Merlin confirmed the arrangement in an official announcement. The companies did not disclose the financial terms or identify which independent artists will initially make their music available.
Universal Music Group joined the project in May through separate recorded music and publishing agreements. Spotify said the tool will initially launch as a paid addition for Premium subscribers, creating another potential source of revenue for participating rights holders.
Spotify Plans Limited Research Preview
During Spotify’s second-quarter earnings call, co-chief executive Gustav Söderström said the product would focus on music from real artists rather than generating fully artificial performers. Co-chief executive Alex Norström said consent, credit and compensation would form the basis of the service.
A research preview will first become available to a limited group of users. Spotify said it does not need to secure participation from every label or artist before beginning the test, but it did not announce a release date.
The product may allow users to alter the arrangement, style or performance of licensed songs while maintaining a connection to the original work. Spotify has not yet explained which editing controls will be available or how royalties will be calculated and divided.
AI-Generated Music Continues to Increase
Spotify is developing the tool as streaming platforms receive growing volumes of fully AI-generated music. Deezer reported that such tracks exceeded 50% of its daily uploads at peak levels in June, reaching about 90,000 submissions per day.
Spotify has presented its approach as an authorised alternative to services that generate music without clear participation from established rights holders. Söderström said conventional generative music would continue developing with or without Spotify, while licensed covers and remixes require cooperation between a streaming platform, artists and music companies.
Featured image credits: Freerangestocks.org
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