Take care, Snow. Spotify announced Thursday a partnership with Universal Music Group (UMG) to allow fans to create covers and remixes of their favorite songs using generative AI technology. The tool is launching as a paid add-on available only to Spotify’s premium subscribers and offers revenue sharing for AI-generated music based on the work of participating artists.
The company did not share pricing or a release date for the new tool, only revealing that the two companies have signed a licensing agreement. But Spotify announced plans last year to develop artist-first AI products in collaboration with Universal Music Group, Sony Music Group, Warner Music Group, Merlin, and Believe.
At the time, Spotify said its AI tools would be created with “upfront agreements, not asking for forgiveness later,” in an explicit criticism of other players in the industry like Suno.
Among the principles Spotify outlines are that artists and rights holders should be able to choose whether and how to engage with AI tools, and that if they do, they should be compensated fairly.
Spotify co-CEO Alex Norström said in a statement about the UMG deal: “Tackling hard questions about music is what we do at Spotify, and fan-made covers and remixes are a close second. What we’re creating is based on consent, credit and compensation for the artists and songwriters who participate.” “With each technological innovation, we have worked with Sir Lucian (Chairman and CEO of Universal Music Group) and his team to evolve the music ecosystem into a richer and more rewarding experience for fans and more rewarding outcomes for artists and songwriters.”
UMG Chairman and CEO Sir Lucian Grainge touted the development as a way for artists to deepen fan relationships while also generating additional revenue opportunities. There is no news yet that UMG artists have agreed to participate.
Services like Suno and Udio have been pioneers in the AI music space, but they went on shaky legal grounds when building AI music creation tools. Naturally, the major labels quickly filed suit. Last November, Suno settled a $500 million lawsuit with Warner Music Group, shortly after Universal Music Group (UMG) settled its lawsuit with Udio.
Currently, Suno is still facing copyright lawsuits from UMG and Sony Music, among others. Meanwhile, Udio has reached an agreement with Warner Music and UMG but is still working on an agreement with Sony.
Seeing the demand for this type of activity from consumers, Spotify headed straight to the labels for its own deals. UMG may be the first of many label partnerships to come, though the company hasn’t directly stated so.
The news was shared among a slew of Investor Day announcements Spotify made on Thursday. This also included an AI-powered audiobook creation tool, AI-powered features for podcasters, a desktop app to create personal podcasts with AI, and concert ticket reservations for top fans.
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