Photo Credit: Spotify
Spotify and Universal Music Group have announced a licensing agreement for a ‘responsible AI’ tool to launch as a paid add-on for Spotify subscribers. It’s another step forward for UMG’s controlled, walled-garden AI licensing vision, one that isn’t quite working for companies like Suno.
Today, Spotify and Universal Music Group (UMG) have announced landmark recorded music and music publishing licensing agreements enabling Spotify to launch a new tool that allows fans to create covers and remixes of their favorite songs from participating artists and songwriters.
This new tool will be powered by generative AI and will open up additional revenue streams as well as new ways to drive discovery. It introduces a creation model where artists and songwriters can directly share in and generate value via AI-driven licensed covers and remixes on the Spotify platform. The tool will launch as a paid add-on for Spotify Premium subscribers.
That scratches a few itches. For UMG, the move offers a controlled, walled-garden AI licensing deal, part of the major label’s broader vision for the technology. For Spotify, a company that has mostly failed to introduce higher-priced tiers outside of generalized price hikes, the expansion could help to establish a higher-end offering and more revenue from subscribers.
“Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next. 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 experiences for fans and a more rewarding outcome for artists and songwriters,” said Alex Norström, Co-CEO, Spotify.
“The most valuable innovations in the music business always bring artists and fans closer together. 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,” said Sir Lucian Grainge, Chairman and CEO, Universal Music Group.
“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.”
With 100 million music tracks, 7 million podcast titles, and 700,000 audiobooks on the platform, Spotify says it now boasts 761 million users, including 293 million subscribers, across 184 markets.
