Spotify Partners with Merlin for AI Remix and Covers Product

On Tuesday, during its earnings call for the second quarter, Spotify revealed that Merlin, a licensing collaborator for independent labels and distributors, has partnered with Universal Music Group (UMG) in its latest AI music initiative. This collaboration integrates over 30,000 labels from Merlin's network, enabling the creation of fan-made covers and remixes by participating artists. Co-CEO Gustav Söderström highlighted that this initiative focuses on "real artists, not fake artists," setting it apart from contentious AI music startups that produce entirely artificial tracks. Co-CEO Alex Norström noted that artists will receive compensation and recognition, describing it as "the first legal way to partake in this AI tailwind." The company intends to initially offer a research preview to a limited user group, with the tool available as a paid add-on, generating extra revenue for artists. This announcement comes amid a surge of AI-generated music on streaming platforms; Deezer recently indicated that more than 50% of daily track uploads are AI-generated, a significant increase from 10% in January 2025. Although Spotify did not disclose a timeline for the preview, it confirmed that a complete music catalog will not be necessary to begin.