via TechCrunch AI
Spotify Expands AI Remix and Covers Project with Merlin Partnership
During its second-quarter earnings call on Tuesday, Spotify teased the upcoming launch of a new product that will allow music fans to create AI-powered covers and remixes of artists' tracks—with artists' consent. The company also announced a new partnership with Merlin, a licensing partner for independent labels and distributors, bringing over 30,000 labels into the initiative. This deal follows a previous agreement with Universal Music Group (UMG) and significantly expands the scope of the project.
Spotify has positioned this AI music product as fundamentally different from more controversial AI music startups that generate fully synthetic songs. Co-CEO Gustav Söderström emphasized to investors that the product is about "real artists, not fake artists." Co-CEO Alex Norström elaborated: "We want artists to be consenting [to add] their work into this catalog, so people can play around with covers and remixes based on their art. We also obviously want to give them credit. And last but not least…we not only have consent and credit, but we also drive compensation for this. So, really, we're talking about the first legal way to partake in this AI tailwind that we see coming for interactive music."
The move comes as AI-generated music floods streaming platforms. Deezer recently reported that more than 50% of its daily track uploads are AI-generated, up from 10% in January 2025. Spotify's approach aims to offer a licensed, artist-friendly alternative.
During the call, Spotify confirmed the AI remix and covers product will launch as a paid add-on, creating a new revenue stream for artists. A research preview will initially be available to a subset of users, and the company noted it will not need a full music catalog to get started. However, Spotify did not specify a release date for the preview.
Söderström highlighted the product's unique value: "Our remix and covers is an incredibly exciting product because there is no one else that can really do this. Normal generative music will happen with or without us. This product will not happen without us, and it needs to exist so that existing artists can participate in this."