Spotify and Universal Music strike deal allowing fan-made AI covers and remixes

Look after, Sun. Spotify announced Thursday that it is partnering with Universal Music Group (UMG) to let fans use generative AI technology to create covers and remixes of their favorite songs. The tool will launch as a paid add-on available only to Spotify’s Premium subscribers and will offer a revenue share to participating artists for the AI-generated music based on their work.

The company did not share pricing or a launch date for the new tool, only that the two companies had come to a licensing agreement. Spotify did, however teased its plans last year, noting that it was working with Universal Music Group, Sony Music Group, Warner Music Group, Merlin and Believe to develop artist-first AI products.

The AI ​​tools would be created by “advance agreement, not by asking for forgiveness later,” Spotify said at the time, an apparent swipe at other players in the space like Suno.

Among the principles Spotify outlined: Artists and rights holders should be able to choose whether and how they participate in AI tools, and if they do, they should be fairly compensated.

“Solving tough music problems is what Spotify does, and fan-made covers and remixes are the next step. What we’re building is based on permission, credit and compensation for the artists and songwriters who participate,” Spotify co-CEO Alex Norström said in a statement about the UMG deal. “We have worked with Sir Lucian through every technological transformation [Chairman & CEO, Universal Music Group] and his team to evolve the music ecosystem into a richer, more useful experience for fans and a more rewarding outcome for artists and songwriters.”

UMG chairman and CEO Sir Lucian Grainge, meanwhile, praised the development as a way for artists to deepen their fan relationships while creating additional revenue opportunities. There is no word yet on which UMG artists have agreed to participate.

While services like Suno and Udio have been pioneers in AI music, they have been moving forward on shaky legal ground in building their AI music creation tools. It’s not surprising that the major labels are quick to file suit. Suno ended in November settle a $500 million lawsuit with Warner Music Group, which came shortly after Universal Music Group (UMG) settled its own lawsuit with Udio.

Today Suno is still facing copyright claims from UMG and Sony Music, among others. Udio has now done that organized with Warner Music and UMG, but is still working on a settlement with Sony.

Seeing consumer demand for this type of activity, Spotify went straight to the labels for its own deal. UMG could be the first of many label partnerships, although the company hasn’t said so outright.

The news was shared Thursday amid a slew of Investor Day announcements from Spotify, which also included an AI-powered audiobook creation tool, AI-powered features for podcasters, a desktop app to produce personal podcasts via AI and reserved concert tickets for top fans.