Spotify and Universal Music Group (UMG) have unveiled landmark recorded music and publishing licensing agreements on AI features for fans.
The deals announced today will enable Spotify to launch a new tool allowing fans to create covers and remixes of their favourite songs from participating artists and songwriters.
The streaming giant announced plans for the AI features with labels last year, and UMG is first out of the gate.
“The groundbreaking tool will be powered by generative AI technology that will open up additional revenue streams and new ways to drive discovery,” said a statement.
It introduces a creation model where artists and songwriters can directly share in the value generated through AI-driven licensed covers and remixes on the Spotify platform.
The new tool will launch as a paid add-on for Spotify Premium users and create an additional source of income for artists and songwriters, on top of what they already earn on Spotify.
This initiative is firmly artist-centric, rooted in responsible AI, and will drive growth for the entire ecosystem
Sir Lucian Grainge
"Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next,” said Alex Norström, co-CEO, Spotify. “What we're building is grounded in consent, credit, and compensation for the artists and songwriters that take part, Through each technological transformation, we have worked together with Sir Lucian and his team to evolve the music ecosystem into a richer, more beneficial experience for fans and a more rewarding outcome for artists and songwriters.”
“The most valuable innovations in the music business always bring artists and fans closer together,” said Sir Lucian Grainge, chairman & CEO, Universal Music Group. “That principle is at the heart of this pioneering AI-enabled superfan initiative, which is designed to support human artistry, deepen fan relationships, and create additional revenue opportunities for artists and songwriters.
“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.”
The new AI-based tool was announced during Spotify’s Investor Day (May 21).
Spotify also unveiled Reserved, which will enable an artist’s most dedicated fans on Spotify to have two tickets for an upcoming US show held for them to purchase before they go on sale to the general public.
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