Be careful, Snow. Spotify announced Thursday that it has partnered with Universal Music Group (UMG) to allow fans to create covers and remixes of their favorite songs using generative AI technology. The tool will launch as a paid add-on available only to Spotify premium subscribers, offering participating artists a revenue share on AI-generated music based on their work.
The company did not disclose the price or release date of the new tool, only that the two companies had reached a licensing agreement. But Spotify hinted at its plans last year, saying it was working with Universal Music Group, Sony Music Group, Warner Music Group, Merlin and Believe to develop artist-first AI products.
Spotify said at the time that its AI tools would be created “by prior agreement, rather than asking for forgiveness after the fact,” an apparent attack on other players in the space like Suno.
Among the principles outlined by Spotify is that artists and rights holders should be able to choose whether and how to participate in AI tools, and if they do, they should be fairly compensated.
Spotify co-CEO Alex Norstrom said in a statement about the UMG deal: “It’s Spotify’s job to solve music’s tough problems, and fan-made covers and remixes are next. What we’re building is based on consent, credit and compensation for the artists and songwriters who participate.” “Through each technology transformation, we have worked with Sir Lucien (Universal Music Group Chairman and CEO) and his team to evolve the music ecosystem into richer, more beneficial experiences for fans and more valuable outcomes for artists and songwriters.”
Meanwhile, UMG Chairman and CEO Sir Lucien Grainge touted the development as a way for artists to deepen their relationships with fans, while creating additional revenue opportunities. No word yet on which UMG artists have agreed to participate.
While services like Suno and Udio were pioneers in the AI music space, they moved forward on shaky legal ground when building AI music creation tools. Naturally, the major labels immediately filed suit. In November, Suno settled a $500 million lawsuit with Warner Music Group, shortly after Universal Music Group (UMG) settled its lawsuit with Audio.
Suno is currently facing copyright infringement claims from companies such as UMG and Sony Music. Meanwhile, Woody has settled with Warner Music and UMG, but is still working on a settlement with Sony.
Seeing demand for this type of activity from consumers, Spotify negotiated directly with labels and created its own deals. Although the company hasn’t said anything, UMG could be the first of many label partnerships to come.
The news was shared among a number of Investor Day announcements by Spotify on Thursday. The announcement also included an AI-powered audiobook creation tool, AI-powered features for podcasters, a desktop app to create personal podcasts via AI, and concert ticket reservations for top fans.
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