Spotify, Merlin partner on paid AI covers preview

During Spotify's second-quarter earnings call, the company revealed plans for a new product that will harness AI technology to enable music fans to create covers and remixes of artists' music, with the artists' permission. Additionally, Merlin, a licensing partner representing independent labels and distributors, has joined forces with Merlin and Universal Music Group (UMG) on this AI music initiative.

This collaboration grants access to over 30,000 labels from Merlin's network, allowing for fan-made covers and remixes from participating artists.

Spotify's co-CEO, Gustav Söderström, emphasized that the AI music product will focus on real artists rather than artificial creations, highlighting the company's commitment to ethical practices. Co-CEO Alex Norström added that the company seeks the artists' consent to incorporate their work into the catalog, ensuring proper credit and fair compensation for their contributions to the AI-driven music landscape.

To introduce the fan remix and covers product, Spotify plans to launch a research preview for a select group of users first. This approach allows the company to test and refine the product before a wider rollout. Unlike other streaming services where over 50% of daily track uploads are now AI-generated, Spotify aims to offer the first legal avenue for fans to engage in AI-enhanced music creation.

Unlike conventional generative music, which is expected to evolve independently, Spotify sees its AI music product as a unique offering that requires collaboration between the company and artists. Co-CEO Gustav Söderström stated that the product will not exist without Spotify's involvement, as it fills a crucial gap in the market, enabling artists to participate and benefit from this emerging AI trend.