During its second-quarter earnings call, Spotify updated investors on its forthcoming AI-enabled product that will let fans create covers and remixes of artists’ music with the artists’ consent. The company also announced that Merlin, the licensing partner for independent labels and distributors, has joined Universal Music Group (UMG) in the initiative, bringing more than 30,000 labels from Merlin’s network into the project.
Product goals and how it will work
Spotify framed the tool as distinct from AI music startups that produce fully artificial songs. Gustav Söderström, Spotify co-CEO, told investors the product is about “real artists, not fake artists.” Co-CEO Alex Norström added that Spotify wants artists to consent to have their work added to the catalog so people can experiment with covers and remixes based on their art.
Norström emphasized that participating artists will be credited and compensated: “We also obviously want to give them credit. And last but not least…we not only have the consent and give credit, but we also drive the compensation for this.” Spotify described the initiative as the first legal way for artists to participate in the anticipated AI-driven shift toward interactive music.
Merlin and UMG involvement
Merlin’s participation significantly expands the range of independent labels that could take part. With more than 30,000 labels in Merlin’s network, the deal opens the product to a large pool of independent catalogues, provided the artists agree to participate.
Rollout, pricing and other details
Spotify said a research preview of the fan remix and covers product will initially be made available to a subset of users. The company also noted that a full music catalog is not required to begin testing. No specific date was disclosed for when the preview will arrive.
Previously, Spotify indicated the tool will be offered as a paid add-on, creating an additional revenue stream for artists and for the platform.
Context: the rise of AI-generated music
AI-generated music has become more prevalent on streaming services. Deezer recently reported that more than 50% of daily track uploads were generated with AI, up from 10% in January 2025.
Spotify’s position
Söderström said that ordinary generative music “will happen with or without us,” but argued that this particular product—built around existing artists’ consent, crediting and payment—“will not happen without us,” and that it needs to exist so existing artists can participate in the emerging interactive music landscape.
The above information is based on statements made during Spotify’s second-quarter earnings call and company disclosures; Spotify has not provided a precise timetable for the wider launch of the product.
