Photo Credit: Ambre Estève
Merlin has officially licensed Spotify’s AI-powered remix and cover feature, thereby setting the stage for member labels and their artists to participate in the walled garden offering if so inclined.
The indie giant and the DSP formally announced their tie-up this morning, which also saw Spotify post its Q2 financials. Technically, the platform, the majors, Believe, and Merlin alike started huddling on gen AI products in October 2025.
But now, the all-important licensing pacts are materializing. And while it probably doesn’t need saying, there are more than a few moving parts associated with the unprecedented remix and cover feature’s rollout.
At the top level, however, Spotify today reiterated that the “tool will launch as a paid add-on,” with talent receiving a piece of the extra-revenue pie. Just how big a piece are we talking about? And what of the professionals who are uninterested in seeing AI manipulate their art?
With answers arriving in the not-so-distant future – most immediately, it’ll be easy enough to determine which labels and acts have signed on – these and other pressing questions represent a portion of the aforesaid moving parts.
As things stand, Merlin CEO Charlie Lexton stressed that artists themselves are in the driver’s seat when it comes to participating (or opting against doing so).
“Giving our members’ artists the choice to make their music available as part of this exciting technology, while ensuring the opportunity to participate in an additional revenue stream, is exactly what Merlin is here to do,” Lexton indicated. “Spotify’s respect for our members’ and their artists’ rights is exemplary, making our decision to work on this project an easy one.”
On the opposite side of the agreement, Spotify global head of music Charlie Hellman, whose company also has a Universal Music AI licensing deal in place, touched on the perceived potential for machine-powered covers and remixes to drive fans “back to the original work.”
“This agreement with Merlin ensures participating artists are credited and compensated, and that every creation drives listeners back to the original work,” added Hellman. “We’re proud to extend this model to the independent community, and we look forward to welcoming more partners as we continue to build.”
Though we don’t know precisely when subscribers will gain access to the feature, Spotify co-CEO Gustav Söderström today highlighted plans for “a research preview” test of sorts.
Data obtained via said preview will play a key role in optimizing the tool ahead of its wider release, the exec explained in more words.
“We’re going to launch the product when it’s ready, and we think it’s good enough, and it has the right appeal to consumers,” Söderström proceeded, clarifying, presumably with Sony Music front of mind, that “we do not need a deal with all the majors.”
Beyond release and participation considerations, multiple price bumps later, it remains to be seen whether AI remixes and covers will catch on among subscribers – especially given Suno’s reach as well as the upcoming (fully licensed) service debuts of Udio and Klay Vision.
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