Spotify and Universal Music Group have announced landmark licensing agreements that will allow Spotify to launch a new AI-powered tool enabling fans to create licensed covers and remixes of songs from participating artists and songwriters. The tool launches as a paid add-on for Spotify Premium users and is built around what both companies describe as a consent, credit, and compensation model, creating a direct revenue stream for artists and songwriters on top of existing Spotify earnings.
Spotify Co-CEO Alex Norström framed the announcement plainly: “What we’re building is grounded in consent, credit, and compensation for the artists and songwriters that take part.” UMG Chairman and CEO Sir Lucian Grainge called it “a pioneering AI-enabled superfan initiative” designed to deepen fan relationships and support human artistry rather than displace it.
The agreement covers both recorded music and music publishing licensing, making it one of the more structurally comprehensive AI deals the industry has seen. With 761 million Spotify users across 184 markets and UMG’s catalog representing the broadest in the industry across every genre, the scale of what this tool could unlock for fan creativity and artist revenue is significant. No launch date has been announced.