Spotify and Universal Music strike deal allows AI songs and fan-made remixes

Take care, Sonu. Spotify announced on Thursday that it has partnered 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 Premium subscribers and will provide a revenue share with participating artists for AI-generated music based on their work.

The company did not announce prices or the launch date of the new tool, but the two companies reached a licensing agreement. However, Spotify teased its plans last year, stating that it was working with Universal Music Group, Sony Music Group, Warner Music Group, Merlin, and Believe to develop artist-first AI products.

Spotify said at the time that the AI ​​tools would be created through “advance agreements, not by asking for forgiveness later,” an apparent criticism of other players in the space, such as Suno.

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

“Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next. What we are building is centered on approval, credit and compensation for participating artists and songwriters,” Spotify co-CEO Alex Norstrom said in a statement about the UMG agreement. “Through every technology shift, we have worked with Sir Lucien [Chairman & CEO, Universal Music Group] and his team to evolve the music ecosystem into a richer, more rewarding experience for audiences and more satisfying results for artists and songwriters.

Meanwhile, UMG Chairman and CEO Sir Lucian Grainge described the development as a way for artists to deepen their relationships with fans while also creating additional revenue opportunities. There is no information yet about the artists who have agreed to participate in UMG.

While services like Suno and Udio have been leaders in the AI ​​music space, they have moved forward on shaky legal ground when building their own music-making tools using AI. Unsurprisingly, major brands were quickly sued. In November, it settled a $500 million lawsuit with Warner Music Group, which came shortly after Universal Music Group (UMG) settled its own suit with Udio.

Today, Suno still faces copyright claims from UMG, Sony Music and others. Meanwhile, Udio has reached a settlement with Warner Music and UMG, but is still working on a settlement with Sony.

Given the demand for this type of activity from consumers, Spotify went straight to brands for a deal of its own. UMG could be the first of many upcoming partnerships, although the company has not explicitly stated this.

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