Spotify Expands AI Remix and Covers Plan With Merlin Partnership

Spotify is preparing an AI-powered product that will let fans create covers and remixes of participating artists’ music. The company described the tool during its second-quarter earnings call and positioned it as a paid add-on rather than a free-for-all generator.

The key promise is control: artists must agree to participate, receive credit, and be compensated. Spotify framed the project as focused on real artists and their catalogs, not fully artificial songs from fake artists.

Merlin, a licensing partner for independent labels and distributors, has joined Universal Music Group in backing Spotify’s AI music effort. According to the provided article data, Merlin represents more than 30,000 independent labels and distributors.

That gives Spotify a broader pool of potential rights holders for the product while still keeping participation opt-in. The company also said it does not need a full music catalog to begin testing the feature.

Spotify is drawing a clear line between its planned product and more controversial AI music tools that can generate fully artificial tracks. Co-CEO Gustav Söderström told investors the product is about “real artists, not fake artists.”

Co-CEO Alex Norström said Spotify wants artists to consent, receive credit, and be compensated when fans use their work for covers and remixes. That positions the product as a rights-managed approach to interactive AI music.

Spotify told investors that a research preview will initially be available to a subset of users. The company did not say when that preview will arrive.

The timing matters because AI-generated music is already a major streaming issue: Deezer recently said more than 50% of daily track uploads were generated with AI, up from 10% in January 2025. Spotify’s bet is that a paid, consent-based remix tool can turn that pressure into a new revenue stream for artists and the platform.