Spotify and Universal Music Group have announced licensing agreements enabling fans to create AI-powered covers and remixes of songs from participating artists and songwriters.
The new tool will launch as a paid add-on for Spotify Premium users, the companies said on Thursday (May 21), creating what they described as an additional revenue stream for artists and songwriters on top of existing Spotify royalties.
The new UMG-Spotify agreements span both recorded music and music publishing. All Spotify users will be able to play the created tracks.
The official announcement didn’t detail the generative AI technology underpinning the new feature, or confirm a specific price/launch date.
“Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next,” said Alex Norström, Co-CEO of Spotify. “What we’re building is grounded in consent, credit, and compensation for the artists and songwriters that take part.
“Through each technological transformation, we have worked together with Sir Lucian and his team to evolve the music ecosystem into a richer, more beneficial experience for fans and a more rewarding outcome for artists and songwriters.”
Sir Lucian Grainge, Chairman & CEO of Universal Music Group, said: “The most valuable innovations in the music business always bring artists and fans closer together.
“That principle is at the heart of this pioneering AI-enabled superfan initiative, which is designed to support human artistry, deepen fan relationships, and create additional revenue opportunities for artists and songwriters.
“Building on our long track record of leading the industry through technology changes, and collaborating with Alex, Gustav, Daniel and the team at Spotify, this initiative is firmly artist-centric, rooted in responsible AI, and will drive growth for the entire ecosystem.”
The deal introduces what the companies described as “a creation model where artists and songwriters can directly share in the value generated through AI-driven licensed covers and remixes on the Spotify platform.”
Participation will be opt-in, with the tool available only for songs from artists and songwriters who have agreed to take part.
The announcement arrives three months after Spotify Co-CEO Gustav Söderström told analysts on the company’s Q4 2025 earnings call in February that Spotify‘s technology to enable fans to create AI-generated remixes and covers was “ready” – but that “the absence of a rights framework” was holding things up.
Söderström described AI-powered “derivatives” of existing music as “an untapped opportunity for artists to make money off of their existing IP.”
Thursday’s announcement suggests that rights framework has now been secured – at least with UMG, the world’s largest music rights company.
The Spotify agreement represents the latest in a series of AI-related licensing deals struck by Universal Music Group over the past year.
In October 2025, UMG settled its copyright infringement lawsuit against AI music platform Udio and agreed to collaborate on a licensed AI music creation service.
That settlement championed a “walled garden” model in which AI-generated music cannot be downloaded or distributed outside the platform on which it was created.
Last month, MBW reported on a patent portfolio linked to UMG targeting AI music derivative infrastructure, including systems built around artist approval, automated revenue distribution, and digital watermarking.
Today’s announcement builds on the broader Spotify–UMG relationship, which was reinforced by a multi-year licensing agreement signed in January 2025 covering recorded music and music publishing.
That deal included a direct licensing agreement between Universal Music Publishing Group and Spotify in the United States.
The launch of the AI covers and remixes tool as a paid add-on for Premium subscribers aligns with Spotify‘s broader strategy of monetizing additional features beyond its core subscription.
In February 2025, Bloomberg reported that Spotify was considering charging up to USD $5.99 more per month for a ‘Music Pro’ tier that would include “superfan” perks – with an AI remix tool among the reported features.
Spotify ended Q1 2026 with 761 million monthly active users, including 293 million paying subscribers, across 184 markets.Music Business Worldwide
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‘ Some details of this article were extracted from the following source www.musicbusinessworldwide.com ’
