Spotify expands AI remix and covers project with Merlin, adding 30,000 independent labels

Spotify is broadening its upcoming AI-powered remix and covers product by partnering with Merlin, a licensing partner for independent labels and distributors, bringing over 30,000 labels into the fold. The announcement, made during Spotify’s second-quarter earnings call on Tuesday, reinforces the company’s strategy to differentiate its tool from controversial AI music generators by focusing on artist consent, credit, and compensation.

Spotify’s AI remix and covers product: What we know so far

The new product will allow fans to create covers and remixes of songs from artists who opt in, with the artists receiving credit and compensation. Spotify co-CEO Gustav Söderström told investors that the initiative is about “real artists, not fake artists,” emphasizing that it provides a legal avenue for participation in the AI music trend. The company has not announced a launch date but confirmed that a research preview will be made available to a subset of users initially, and the tool will be offered as a paid add-on.

Merlin’s participation is significant because it expands the catalog to include a vast network of independent labels, giving the product a broader library of music to remix and cover. This move follows Universal Music Group’s earlier involvement, signaling that major and independent sectors are both engaging with the platform.

Why this matters in the AI music landscape

The announcement comes amid a surge in AI-generated music on streaming services. Deezer reported that more than 50% of daily track uploads are now AI-generated, up from 10% in January 2025. This has raised concerns about copyright, authenticity, and revenue distribution. Spotify’s approach aims to address these issues by ensuring that artists have control over how their work is used and are compensated for derivative creations.

By positioning the product as a legal and artist-friendly alternative, Spotify is attempting to build trust with the music industry while capitalizing on the growing interest in AI-driven creativity. Söderström highlighted that this product is unique to Spotify, stating that “normal generative music will happen with or without us,” but this specific remix and covers feature requires the platform’s infrastructure and artist partnerships.

What this means for artists and fans

For artists, the tool offers a new revenue stream and a way to engage with fan creativity without losing control over their music. For fans, it provides a novel way to interact with their favorite tracks, potentially leading to viral moments and deeper engagement. However, the success of the product will depend on how many artists opt in and how the compensation model is structured.

Spotify has not disclosed financial terms, but the company’s emphasis on “driving compensation” suggests that artists will receive a share of the revenue generated from paid add-ons. This could set a precedent for how AI-generated derivatives are monetized in the streaming industry.

Conclusion

Spotify’s partnership with Merlin marks a significant step toward mainstream adoption of AI-assisted music creation, but with a rights-respecting framework. As the company prepares to launch the product, it faces the challenge of balancing innovation with industry concerns. The move could reshape how streaming platforms integrate AI, potentially influencing competitors and regulators alike.

FAQs

Q1: When will Spotify’s AI remix and covers product be available?
Spotify has not announced a specific launch date. The company said a research preview will be rolled out to a subset of users initially, but no timeline was provided.

Q2: How will artists be compensated for AI remixes and covers?
Spotify has stated that artists will receive credit and compensation for their participation. The exact payment structure has not been detailed, but the tool will be a paid add-on, creating a new revenue stream.

Q3: Will all artists on Spotify be included in the AI remix project?
No. Only artists who consent to have their music used in the project will be included. The partnership with Merlin brings in independent labels that have agreed to participate, but individual artists can choose to opt out.