Spotify AI remix tool expands to Merlin’s independent-label network

Spotify’s planned AI remix tool has gained a licensing deal with Merlin, opening a potential path for independent-label artists to take part in fan-made covers and remixes. For Spotify users and investors, the announcement expands the project’s possible music pool, but it does not mean the product is live or that Merlin’s catalog will be available automatically.

Merlin represents independent labels and distributors, and Spotify said the August 4 agreement gives artists on labels covered by Merlin’s Spotify deal the choice to participate. TechCrunch reported that Merlin’s network includes more than 30,000 labels. Participation remains opt-in, so the specific artists, songs and labels included have not been disclosed.

Spotify has described the forthcoming feature as a generative-AI-powered tool that would let fans create covers and remixes using music from participating artists and songwriters. The company says it is building the service around artist consent, credit and compensation. Those are Spotify’s stated terms for the initiative, rather than results that can yet be measured from a launched product.

When will Spotify’s AI remix tool be available?

Spotify has not announced a launch date or price. During its second-quarter earnings call, executives said a research preview would first be offered to a limited group of users, according to TechCrunch. The company did not give a date for that preview.

The feature is planned as a paid add-on for Spotify Premium subscribers, rather than a standard Premium benefit. Spotify says the structure is intended to create an additional source of revenue for participating artists and songwriters, but it has not explained the price, payment formula or precise creation tools users will receive.

What changed with the Merlin agreement?

The Merlin deal extends an effort Spotify first set out with Universal Music Group in May. In that earlier announcement, Spotify and UMG said they had reached recorded-music and music-publishing licensing agreements for the same type of fan creation tool. Spotify said the UMG arrangement covered participating artists and songwriters and would also be sold as a Premium add-on.

Merlin brings an independent-label licensing partner into the project. Charlie Hellman, Spotify’s senior vice president and global head of music, said the agreement is meant to ensure participating artists receive credit and compensation, while sending listeners back to the original work. Merlin CEO Charlie Lexton said its members’ artists would have the option to make their music available and share in an additional revenue stream.

Universal Music Group and Merlin are the announced licensing partners for this specific product. Music Business Worldwide reported that Sony Music Group, Warner Music Group and Believe had not announced agreements for it as of August 4. Investors following Spotify’s product strategy now have a clearer view of the licensing direction, while the consumer rollout, pricing and eventual catalog remain unresolved.

This story draws on original reporting from TechCrunch.