Spotify and Universal Music agree deal to let subscribers create AI remixes

Licensing agreement will allow listeners to use AI to create content on streaming platform for first time Spotify and Universal Music Group have agreed on a deal that will allow subscribers to generate song covers and remixes using artificial intelligence. The licensing agreement is the first time the Swedish streaming company will allow listeners to use AI to create content through its platform. It is expected to be in the form of a paid add-on available on Spotify’s app. Premium users will be able to remix songs from participating artists and create AI-driven licensed covers. Spotify said the new tool could create an extra stream of income for artists and songwriters, in addition to what they already earn through royalties. The financial terms of the deal were unclear, and the companies did not reveal which artists would participate in the licensing deal. Universal Music is home to artists including Taylor Swift, Ariana Grande and Billie Eilish. Spotify’s shares were up 16% on Thursday, with revenue expected to grow at a “mid-teens” annual rate and gross profit margins to reach between 35% and 40% through to 2030, according to the FT. “Solving hard problems for music is what Spot