Spotify is expanding its planned AI-powered remix and cover feature through a new licensing agreement with Merlin, bringing a large part of the independent music sector into a project previously tied mainly to Universal Music Group.
The agreement gives artists represented by Merlin members the option to make their music available for fan-created covers and remixes inside Spotify. The feature will be offered as a paid add-on for Premium subscribers, although Spotify has not disclosed a launch date, subscription price or complete list of participating artists.
The move gives Spotify access to a broader catalog as it tries to build a licensed alternative to the generative music tools already reshaping how songs are created, copied and distributed.
Independent Music Joins
Merlin negotiates digital licensing agreements on behalf of independent labels and distributors in more than 70 countries. Its members account for about 15% of the global recorded music market and include companies such as Domino, Epitaph, Ninja Tune, Sub Pop, Warp Records and Secretly.
The deal could extend Spotify’s remix project across a large network of independent labels and distributors. Participation will not be automatic. Artists and rightsholders covered by Merlin’s Spotify agreement will decide whether their recordings can be used.
Charlie Hellman, Spotify’s senior vice president and global head of music, said the agreement ensures participating artists are “credited and compensated” while sending listeners back to the original recording.
Merlin chief executive Charlie Lexton said artist choice and the prospect of an additional revenue stream were central to joining the project. He described Spotify’s respect for members’ rights as “exemplary.”
That opt-in structure matters because independent labels have often warned that AI products can arrive before licensing, attribution and payment systems are settled. Spotify is trying to reverse that sequence by signing agreements before releasing the tool. Its stated AI principles require advance partnerships with rightsholders, voluntary participation, transparent credit and new compensation for creators.
A Premium Add-On
Spotify first revealed the remix and cover product in May through licensing agreements with Universal Music Group covering recorded music and publishing rights. The company said the tool would use generative AI to let fans create new versions of songs from participating artists and songwriters.
The resulting creations are expected to generate revenue for the original rightsholders, artists and songwriters. Spotify has not explained how royalties will be calculated, whether remixes will be publicly shareable by default or what controls artists will have over specific styles, voices and uses.
The company has confirmed that the feature will sit on top of a standard Premium subscription rather than being included automatically. This places it within Spotify’s effort to sell additional experiences to highly engaged listeners while creating income beyond conventional streaming royalties.
A limited research preview is expected to reach a subset of users before a wider release. Spotify has indicated that it does not need every major catalog to participate before testing the product, but Merlin makes the potential selection more diverse.
“Real Artists, Not Fake Artists”
Spotify executives are drawing a sharp distinction between this project and platforms that generate fully artificial songs with synthetic performers.
During the company’s second-quarter earnings discussion, co-chief executive Gustav Söderström described Spotify’s approach as being about “real artists, not fake artists.” Co-chief executive Alex Norström has said the product will be grounded in “consent, credit, and compensation” for participating artists and songwriters.
That positioning responds to a growing concern. Generative music services can produce complete tracks from text prompts, while voice-cloning systems can imitate recognizable performers. Rights disputes have followed over training data, vocal identity, ownership and whether AI-generated songs compete directly with human work.
Spotify’s model attempts to keep the original artist at the center. Fans would create derivatives only from participating works, creators would remain identified, and the resulting activity would feed a payment system.
Important questions remain. Spotify has not detailed whether artists can approve individual remixes, block certain transformations or remove creations after publication. It has also not explained how it will stop offensive, misleading or poor-quality outputs from being associated with an artist’s name.
AI Music Surges
The partnership arrives as streaming services face a rapid increase in machine-generated music. Deezer said AI-generated tracks accounted for more than half of its daily uploads at peak levels in June 2026, reaching an average of about 90,000 tracks per day.
That rise has pushed platforms toward different responses. Some have restricted AI music, while others have introduced labeling, detection or monetization rules. Spotify has strengthened its policies against unauthorized voice impersonation, stating that it will remove music that clones a real artist’s voice without permission.
The company has also introduced identity and credit features intended to make artists and their contributions easier to verify. These include Verified by Spotify badges, expanded credits and SongDNA, which maps connections between original recordings, collaborators, samples and covers.
The Merlin agreement shows that Spotify does not intend to reject generative music entirely. Instead, it is trying to separate licensed participation involving established artists from uncontrolled generation that may use music or voices without permission.
That distinction may be difficult to preserve once fan-made tracks circulate outside Spotify. A licensed remix created inside the service could be uploaded elsewhere without its original metadata, payment links or attribution. The product will therefore depend partly on how creations are labeled, tracked and shared.
A Larger AI Bet
The announcement came alongside Spotify’s second-quarter results, which showed the platform reaching 777 million monthly users and 300 million Premium subscribers. Revenue rose 14% to €4.78 billion, while operating income reached €655 million.
Spotify also said around 25% of its users are already engaging with AI features. At the same time, the company expects marketing and AI-related investments to add approximately €200 million to operating expenses during 2026.
Those figures show why the remix tool carries more than experimental value. Spotify is spending heavily to make AI part of its main product strategy, but it also needs features capable of producing direct revenue rather than only improving recommendations.
Merlin gives that strategy a stronger independent music component. Universal supplied the first major licensing foundation, while Merlin adds labels and artists outside the major-label system. Spotify has also discussed responsible AI development with Sony Music Group, Warner Music Group and Believe, but separate agreements for this remix product had not been announced at the time of publication.
Artist Buy-In Comes Next
The deal gives Spotify a larger licensed base, but the usable catalog will depend on how many artists choose to participate. Some may view remixes and covers as a new form of fan engagement and discovery. Others may be uncomfortable allowing software to alter their performances, songwriting or vocal identity.
Pricing will also shape adoption. Spotify has not said what the add-on will cost or how revenue will be divided among the platform, labels, publishers, artists and songwriters. Without those details, it is too early to judge whether the product will produce meaningful income or remain a niche creative extra.
For now, the Merlin agreement moves Spotify’s AI music plans closer to launch and widens the project beyond one major music company. It also creates a practical test of Spotify’s promise that generative music can be built around permission and payment rather than imitation first and licensing later.
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