Spotify announced in August 2026 that Merlin, a licensing partner representing independent labels and distributors, has joined Universal Music Group on its upcoming AI-powered fan remix and covers product. The deal adds more than 30,000 labels from Merlin’s network to the platform, expanding the pool of artists who can opt in to let fans create AI-generated covers and remixes of their music.
The announcement came during Spotify’s second-quarter earnings call on Tuesday, August 4, 2026, where the company also confirmed that a research preview of the product would initially roll out to a subset of users. Spotify did not provide a specific launch date for the preview.
Spotify co-CEOs Gustav Söderström and Alex Norström both addressed the product on the call. Norström described it as “the first legal way to partake in this AI tailwind” in interactive music, emphasizing that participating artists must consent, will receive credit, and will be compensated. Söderström framed the product around “real artists, not fake artists,” distinguishing it from AI music tools that generate fully artificial songs without artist involvement.
The tool is planned to launch as a paid add-on, which Spotify has previously said would create an additional revenue stream for artists. Spotify also noted the product would not require a full music catalog to get started.
The move comes as AI-generated music continues to surge on streaming platforms. Music streamer Deezer recently reported that more than 50% of its daily track uploads were AI-generated, up from 10% in January 2025.
Söderström suggested the product’s consent-based structure makes it unique: “This product will not happen without us, and it needs to exist so that existing artists can participate in this.” The approach may offer a model for how streaming platforms can engage with AI music while keeping artists in control of how their work is used.
Source: TechCrunch