Spotify to monetise AI-generated covers in Universal partnership

Spotify

The platform said the feature could create an additional revenue stream for artists and songwriters.

Spotify and Universal Music Group have locked in a licensing deal that will allow subscribers to generate song covers and remixes using artificial intelligence (AI).

The contract marks the first time Spotify will allow listeners to generate AI-generated content through its platform. As per The Guardian, the tool is expected to launch as a paid add-on in the Spotify app, allowing Premium users to remix songs by participating artists and create licensed AI-driven covers.

Spotify said the feature could create an additional revenue stream for artists and songwriters, in addition to the royalties they already receive.

This partnership coincides with Spotify’s latest internet scrutiny; they recently replaced their iconic logo with a shimmering dark green 3D disco ball as part of the platform’s 20th-anniversary celebration. The move invited heavy backlash, with some even questioning whether it violated the brand identity.

Consent, credit and compensation

Spotify co-chief executive Alex Norström said the tool is being built with artist protections in mind.

“Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next,” Norström said. “What we’re building is grounded in consent, credit and compensation for the artists and songwriters that take part.”

The financial terms of the deal have not been disclosed, and the companies have not revealed which artists will participate.

Universal Music is home to artists including Taylor Swift, Ariana Grande and Billie Eilish.

Universal Music backs the move

Universal Music Group CEO Lucian Grainge said the deal is designed to support human artists while opening new revenue possibilities.

“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,” Grainge said.

AI becomes Spotify’s next frontier

The deal arrives as Spotify seeks new ways to expand beyond traditional music subscriptions and incorporate AI into its ecosystem.

Earlier this month, Spotify announced a beta feature allowing AI agents to save and play “personal podcasts”, offering users a private daily briefing. The company has also rolled out a Verified by Spotify badge to help users distinguish between human artists and AI-generated content.

Spotify said the badge, marked with a green checkmark, will appear on artist profiles and in search results.

“In the AI era, it’s more important than ever to be able to trust the authenticity of the music you listen to,” the company said.

Top image: Spotify

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