Spotify strikes deal with Universal Music that allows for fan-made AI covers and remixes

Take care, Suno. Spotify announced on Thursday that it has partnered with Universal Music Group (UMG) to allow fans to use AI production technology to create covers and remixes of their favorite songs. The tool will be launched as a paid add-on available only to Spotify’s Premium subscribers and will offer a share of revenue with participating artists for AI-generated music based on their work.

The company did not share pricing or a launch date for the new device, only that the two companies had reached a licensing agreement. However, Spotify teased its plans last year, noting that it was working with Universal Music Group, Sony Music Group, Warner Music Group, Merlin, and Believe to develop the first AI products for the artist.

The AI ​​tools will be built with “upfront agreements, not by asking for forgiveness later,” Spotify said at the time, an apparent swipe at other players in the space, such as Suno.

Among the goals stated by Spotify: artists and rights holders should be able to choose whether and how they participate in AI tools, and if they do, they should be compensated accordingly.

“Solving difficult music problems is what Spotify does, and the fan-made covers and remixes that follow. What we’re building is based on permission, credit, and compensation for the artists and songwriters involved,” said Sotify co-CEO Alex Norström, in a statement about the UMG deal. “With each technological revolution, we have worked closely with Sir Lucian [Chairman & CEO, Universal Music Group] and his team to transform the music ecosystem into something richer, more profitable for fans and more rewarding for artists and songwriters.”

UMG Chairman and CEO Sir Lucian Grainge, meanwhile, hailed the development as a way for artists to deepen relationships with their fans while also creating additional revenue opportunities. No word yet on whether UMG artists have agreed to participate.

While services like Suno and Udio have been pioneers in the AI ​​music space, they’ve moved into shaky legal ground when they built their own AI music creation tools. Undoubtedly, the major labels were immediately sued. In November, Suno finally settled a $500 million lawsuit with Warner Music Group, which came shortly after Universal Music Group (UMG) settled for Udio.

Today, Suno still faces copyright claims from UMG and Sony Music, among others. Meanwhile, Udio has settled with Warner Music and UMG, but is still working on a settlement with Sony.

Recognizing the need for this type of service from consumers, Spotify went straight to the labels to get its deal. UMG may be the first of many label partnerships to come, though the company hasn’t said so.

The news was shared amid a slew of Investor Day announcements from Spotify on Thursday, including an AI-powered audiobook creation tool, AI-powered features for podcasters, a desktop app to produce personal podcasts with AI, and concert tickets reserved for top fans.