Spotify expands AI remix and covers project with Merlin partnership
Spotify adds independent label licensing partner Merlin to its upcoming AI music creation tool, bringing over 30,000 additional labels to the platform.
Stock photo for illustration only, not from the actual event
- Spotify teased its upcoming AI music remix and cover tool during its second-quarter earnings call.
- Merlin joined Universal Music Group as a partner, bringing over 30,000 independent labels to the project.
- Fan-made covers and remixes will require explicit consent from participating artists.
- The tool is planned as a paid add-on feature designed to generate a new revenue stream for creators.
During its second-quarter earnings call on Tuesday, Spotify provided fresh details regarding an upcoming product designed to let music enthusiasts utilize artificial intelligence to generate covers and remixes of songs, provided they have explicit consent from the artists involved.
In addition to Universal Music Group (UMG), which signed on earlier, the streaming company officially announced that Merlin—a key licensing partner representing independent labels and distributors—has now partnered up for this AI music initiative.
Securing a partnership with Merlin is a critical strategic move for Spotify, ensuring that independent creators and smaller labels are not left behind in the generative AI shift. By incorporating over 30,000 independent labels upfront, Spotify can mitigate major copyright hurdles and ensure a diverse catalog of participatory artists from day one.
This newly announced agreement brings more than 30,000 individual labels from Merlin’s extensive network directly into the ecosystem, establishing a framework where fan-generated covers and remixes can legally take place for any artist who opts in to the program.
Stock photo for illustration only, not from the actual event
This initiative arrives as streaming services continue to grapple with a massive wave of AI-generated audio content. Rival streaming platform Deezer recently highlighted that over 50% of its daily track uploads now consist of AI-generated music, marking a sharp surge compared to just 10% back in January 2025.
Addressing investors during the call, company representatives explained that an initial research preview of the fan remix and covers product will roll out selectively to a subset of users. Spotify also clarified that the tool will not require a complete music catalog to get off the ground, though management refrained from sharing a specific launch timeline for the preview.
As previously indicated by the company, this upcoming tool is slated to launch commercially as a paid add-on feature, establishing a dedicated alternative revenue stream for participating musical artists.
Source: TechCrunch
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