Spotify has announced a landmark deal to allow fans to create AI covers and remixes as part of a paid Premium add-on feature on the platform.
Publishing licensing agreements enable Spotify to launch a new tool that allows fans to create covers and remixes of their favourite songs from Universal Music Group’s artists and songwriters.
According to Spotify, the “groundbreaking” tool will be powered by generative-AI technology that will open up additional revenue streams and new ways to create discovery.
Revenue generation
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.
Set to launch as a paid add-on for Spotify Premium users, the new tool aims to create an additional source of income for artists and songwriters on top of what they already earn on 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,” said Spotify co-CEO Alex Norström in a statement.
“Through each technological transformation, we have worked together with [UMG CEO] Sir Lucian [Grainge] 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.”
Norström told Reuters that subscribers would initially receive a “limited amount of usage”, allowing them to try out the tool, but to continue using it, they will have to purchase the add-on.
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Undisclosed details
The companies involved have not disclosed the financial terms of the new deal or named participating artists.
Universal Music represents several major artists including Taylor Swift, Ariana Grande and Drake.
“The most valuable innovations in the music business always bring artists and fans closer together,” added Grainge.
“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, [co-CEO] Gustav [Söderström], [executive chairman] Daniel [Ek] and the team at Spotify, this initiative is firmly artist-centric, rooted in responsible AI and will drive growth for the entire ecosystem.”
The official announcement does not detail the generative-AI technology underpinning the new feature nor confirm a specific price or launch date.
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