Spotify Partners With Merlin to Scale AI-Powered Remix and Cover Tool
The streaming giant secures a licensing deal with a network representing 30,000 independent labels to expand its opt-in AI creativity suite.
Spotify has signed a licensing agreement with Merlin, a digital rights agency representing more than 30,000 independent labels and distributors. The deal expands the available catalog for Spotify's upcoming AI-powered tool that allows fans to create licensed covers and remixes of participating artists' music.
Merlin, which accounts for approximately 15% of the global recorded music market, joins Universal Music Group (UMG) as a key partner in the initiative. UMG was the first major partner to sign on for the tool on May 21, 2026. The product is designed as a paid add-on for users, which Spotify intends to use to create a new revenue stream for participating artists and songwriters. To ensure artist control, the tool follows a "consent, credit, and compensation" model, meaning artists must explicitly opt-in to participate.
The battle against synthetic music
This move comes as the music industry grapples with a surge of fully synthetic, AI-generated content. The scale of the shift is evidenced by reports from Deezer, which stated that over 50% of daily track uploads were AI-generated by July 2026. By focusing on "real artists" rather than synthetic clones, Spotify is attempting to build a legal framework for interactive music that protects intellectual property while still leveraging generative AI trends.
Spotify co-CEO Gustav Söderström emphasized the necessity of the tool, noting that while normal generative music will happen regardless of the company's involvement, this specific product requires the participation of artists to exist. Co-CEO Alex Norström added that the goal is for artists to consent to adding their work to the catalog so fans can "play around with covers and remixes based on their art."
Institutionalizing AI creativity
By securing agreements with both a dominant major label like UMG and a massive independent network like Merlin, Spotify is positioning itself as the primary legal gateway for AI-assisted fan creativity. This strategy could set the industry standard for how AI-generated music is licensed, credited, and monetized, shifting the technology from a disruptive threat to an institutionalized tool for engagement.
What to watch
A research preview of the product will initially be made available to a subset of users before a wider rollout. The industry will be watching to see how many independent artists choose to opt-in and whether the paid add-on model generates significant new royalties for the creators involved.