Spotify and UMG Sign Licensing Deals to Launch an AI Tool
Spotify’s ‘Investor Day’ event revealed plans for a new feature in partnership with Universal Music Group. The agreement encompasses licensing for both recordings and publishing, allowing Spotify to “launch a new tool allowing fans to create covers and remixes of their favourite songs from participating artists and songwriters.”
The tool will be a “paid add-on for Spotify Premium users” and is intended to “create an additional source of income for artists and songwriters, on top of what they already earn on Spotify.”
The development follows a prior announcement in October 2025, where Spotify stated its intention to build “artist-first AI music products” in collaboration with all three major labels, Merlin, and Believe. UMG is the first rights holder to finalize a licensing agreement for these products, with others expected to follow.
“What we’re building is grounded in consent, credit, and compensation for the artists and songwriters that take part,” stated Spotify co-CEO Alex Norström. UMG boss Sir Lucian Grainge added, “This initiative is firmly artist-centric, rooted in responsible AI, and will drive growth for the entire ecosystem.”
The launch timeline for the new AI add-on remains unspecified. It is currently unknown whether the company will proceed with UMG as a sole partner or wait for additional agreements. Questions remain regarding artist participation and the shareability of user-generated remixes and covers. The emergence of these tools also raises questions about who owns a song no one wrote?
The announcement suggests a potential shift in strategy away from a single, higher-priced subscription tier, and towards individual add-ons for specific features, beginning with the AI-powered remix and cover option.
Spotify SVP and global head of music Charlie Hellman indicated this approach, stating, “We are also focused on things that might be more specific segments, with interests in particular areas that we want to make add-ons for.” This launch comes at a time when Splice and ElevenLabs Partner to Develop New AI-Powered Tools.
