Spotify and Universal Music Group (UMG) have signed new licensing agreements that will allow Spotify to launch generative AI tools for fan-made covers and remixes.

The deal covers recorded music and music publishing rights. It will let Spotify Premium users create AI-powered covers and remixes of songs from participating UMG artists and songwriters.

The AI music tool will launch as a paid add-on for Spotify Premium subscribers. Spotify has not announced a launch date or pricing for the feature. However, the company said the tool will create new revenue opportunities for artists and songwriters on top of what they already earn on Spotify.

Music Business Worldwide reported that all Spotify users will be able to play the tracks created through the new AI covers and remixes tool.

Spotify said artists and rightsholders will decide if and how they want to take part.

The company said the system is being built around consent, credit, and compensation for participating artists and songwriters. Spotify also said it recognizes that artists have different views on generative music tools.

Spotify co CEO Alex Norström said fan-made covers and remixes are the next major problem the company wants to solve for music. He said the feature is being built in a way that supports artists and songwriters who choose to participate.

Spotify and UMG said the AI tool could create discovery opportunities for participating artists. The companies are positioning the feature as a way to bring artists and fans closer together while adding another paid feature to Spotify’s Premium offering.

UMG Chairman and CEO Sir Lucian Grainge said the initiative is designed to support human artistry and create additional revenue opportunities.

The move also puts Spotify more directly into the AI music space, where startups such as Suno have already gained attention. TechCrunch reported that Spotify has framed its approach as one based on upfront agreements rather than launching first and resolving licensing later.

Spotify also announced a new feature called Reserved. The feature will set aside concert tickets for Premium subscribers that Spotify identifies as an artist’s most dedicated fans.

Spotify said buying concert tickets today can be stressful and unpredictable. The company said Reserved is meant to give real fans a better chance of getting tickets without relying only on speed during public sales.

Spotify has not said when the AI music creation tools will become available.

For now, the company has only confirmed that the feature will arrive in the future as a paid add-on for Premium users. The deal with UMG gives Spotify the rights framework it needs to build AI cover and remix tools while allowing artists and rightsholders to choose whether they want to participate.

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