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

Key Takeaways

→ The tool launches as a paid add-on available only to Spotify Premium subscribers

→ Participating artists receive a share of the revenue from AI-generated music based on their work

→ Pricing and launch date were not announced; the companies only confirmed a licensing agreement

→ No word yet on which UMG artists have agreed to participate

→ Spotify teased the work last year with UMG, Sony Music, Warner Music, Merlin, and Believe, built on artist-first principles

Watch out, Suno. Spotify on Thursday announced it has partnered with Universal Music Group (UMG) to let fans use generative AI to create covers and remixes of their favorite songs. The tool will launch as a paid add-on available only to Spotify Premium subscribers and will offer a revenue share with participating artists for AI-generated music based on their work.

The Licensing Deal

Spotify did not share pricing or a launch date, only that the two companies had reached a licensing agreement. But the deal builds on plans the company teased last year, when it said it was working with UMG, Sony Music Group, Warner Music Group, Merlin, and Believe on artist-first AI products. At the time, Spotify said the tools would be built through upfront agreements, “not by asking for forgiveness later” - an obvious swipe at Suno.

Artist-First Principles

The guiding principles are clear: artists and rightsholders should be able to choose if and how they participate in AI tools, and if they do, they should be fairly compensated. Spotify co-CEO Alex Norström framed the UMG agreement as grounded in “consent, credit, and compensation” for the artists and songwriters who take part. UMG Chairman and CEO Sir Lucian Grainge called the development a way for artists to deepen fan relationships while creating additional revenue opportunities. There is no word yet on which UMG artists have agreed to participate.

The Suno and Udio Precedent

Suno and Udio pioneered AI music but moved forward on shaky legal ground, and the major labels quickly sued. In November, Suno settled a $500 million lawsuit with Warner Music Group, shortly after UMG settled its own suit with Udio. Suno still faces copyright claims from UMG and Sony Music, and Udio is still working to settle with Sony. Seeing real consumer demand, Spotify went straight to the labels for a deal of its own - and UMG may be the first of many such partnerships to come.

A Morning of AI Announcements

The news landed amid a flurry of Investor Day announcements from Spotify, including an ElevenLabs-powered audiobook creation tool, AI-powered podcast features, a desktop app for producing personal podcasts, and reserved concert tickets for top fans. The UMG deal signals streaming’s measured path forward on generative music: license first, compensate artists, and let fans create - a template rivals will be watching closely.

Frequently Asked Questions

Can I make AI covers and remixes on Spotify?

Spotify is building this capability with Universal Music Group as a paid add-on for Premium subscribers. Once it launches, fans will use generative AI to create covers and remixes of participating artists' songs.

Will artists get paid for AI covers of their songs on Spotify?

Yes, Spotify says participating artists receive a share of the revenue from AI-generated music based on their work, part of an agreement grounded in consent, credit, and compensation.

How is this different from Suno and Udio?

Suno and Udio built their tools first and faced label lawsuits, including a $500 million settlement with Warner Music. Spotify instead reached an upfront licensing agreement with UMG before launching, an approach it describes as artist-first.