Spotify Expands AI Fan Remix Project with Independent Label Network Merlin
Spotify has announced a partnership with Merlin, a licensing partner representing independent record labels and distributors, to expand its upcoming AI-powered remix and cover product. Revealed during the streaming company’s second-quarter earnings call, the agreement brings over 30,000 independent labels into Spotify’s licensed AI ecosystem alongside Universal Music Group.
What Happened
During its second-quarter earnings call, Spotify teased an upcoming feature designed to let music listeners use artificial intelligence to create covers and remixes of tracks, provided the artists consent to participating. To support the project, Spotify added Merlin to the effort alongside Universal Music Group (UMG). This deal incorporates more than 30,000 independent record labels from Merlin’s network, enabling fan-made remixes and covers for artists who agree to opt in.
Spotify leadership emphasized that its approach differs from controversial AI startups that create entirely artificial songs. Instead, the focus is placed on existing, real artists participating in interactive music creation through opt-in licensing.
Key Highlights
- Merlin Network Integration: Adds over 30,000 independent record labels to Spotify’s AI music initiative alongside Universal Music Group.
- Artist Rights and Consent: Participating musicians must explicitly consent to include their work in the catalog, ensuring they receive credit and revenue share.
- Monetization Model: The tool will be released as a paid add-on, generating a new revenue stream for participating artists.
- Testing and Launch: A research preview will initially roll out to a select group of users and will not require a complete music catalog at launch. Spotify has not yet announced a specific release date.
- Industry AI Context: Streaming platform Deezer recently revealed that over 50 percent of its daily track uploads were AI-generated, compared to 10 percent in January 2025.
Why This Matters
The music streaming market has seen a surge in AI-generated audio. Streaming provider Deezer reported that AI-generated tracks grew from 10 percent of daily uploads in January 2025 to over 50 percent recently. Spotify’s product aims to construct a legal framework around AI music tools that relies on artist authorization and compensation.
Co-CEO Gustav Söderström told investors that the feature focuses on “real artists, not fake artists,” adding that while standard generative music will happen regardless, this product allows existing artists to participate. Co-CEO Alex Norström highlighted that the system provides consent, attribution, and monetization, describing it as the first legal way to participate in interactive music AI trends.
What to Watch Next
Spotify plans to deploy a research preview of the remix and cover feature to a subset of platform users. The company noted that it does not require a full music catalog to begin testing. While Spotify confirmed that the tool will be launched as a paid add-on to generate secondary revenue for artists, an exact launch timeline has not yet been provided.
Frequently Asked Questions
What is Spotify’s upcoming AI music product?
It is an upcoming feature that allows users to create AI-assisted covers and remixes using music from participating artists who have consented to be part of the program.
Which companies are partnering with Spotify on this feature?
Universal Music Group (UMG) and Merlin—which represents more than 30,000 independent music labels and distributors—are the announced licensing partners.
How are artists compensated and credited?
Artists must consent before their work is added to the catalog. When included, they receive credit and compensation derived from the tool, which will operate as a paid add-on feature.
When will the feature be officially released?
Spotify will first release a research preview to a subset of users. An official release date has not yet been announced.
Source: TechCrunch and Spotify Q2 earnings call statements.