Spotify has secured a licensing agreement with music publisher Kobalt for its forthcoming generative AI feature that will allow users to create covers and remixes. The deal, announced on 13 August, marks the streaming platform’s first such arrangement with a music publisher outside Universal Music Group (UMG).
The agreement follows a similar pact with independent label network Merlin on 4 August. UMG was the first major music company to sign on, reaching a deal with Spotify in May that covers both recorded music and publishing rights.
How the AI Tool Will Work
The planned feature, which has no confirmed launch date or pricing, will be offered as a paid add-on for Spotify Premium subscribers. It will use generative AI to let users create covers and remixes from the catalogues of participating artists and songwriters.
Spotify said the licensing model is designed to ensure that songwriters and artists receive a share of the value generated by the new creations.
“Covers and remixes begin with the song, which makes music publishers and songwriters essential partners in building this tool the right way,” said Charlie Hellman, Spotify’s senior vice-president and global head of music. “This agreement with Kobalt is grounded in consent, credit, and compensation for the songwriters who take part, and every creation drives listeners back to the original song. We look forward to welcoming more partners as we continue to build.”
Laurent Hubert, CEO of Kobalt, said: “Spotify’s new AI-powered creative tools are built on a foundation of ethical training, fair compensation, and intentional guardrails.”
Consent and Opt-In Model
Spotify has emphasised that participation in the AI tool will be based on consent. During the company’s second-quarter 2026 earnings call on 4 August, co-CEO Alex Norström outlined a framework of three Cs: consent, credit, and compensation.
Under the UMG agreement, artists and songwriters must opt in for their music to be available for AI-generated covers and remixes. The Merlin deal covers labels within its network, while individual artists can choose whether to make their catalogues accessible. Details of how the Kobalt agreement will handle songs with multiple songwriters and publishers have not been disclosed.
Broader Industry Moves
Kobalt has previously entered licensing agreements with AI music platforms, including Udio and ElevenLabs. The ElevenLabs deal requires Kobalt to control all mechanical rights for a composition.
The music publishing sector is actively establishing AI licensing frameworks. The National Music Publishers’ Association announced an industry-wide agreement with Udio in June, while several major music companies remain in legal disputes with AI platforms over the use of copyrighted material.
Launch Timeline
Spotify has not yet confirmed when the covers and remixes feature will be available. Co-CEO Gustav Söderström has said the company intends to first release a research preview to a limited group of users before a wider rollout.
