Spotify extends AI fan remix tool to independent artists through Merlin deal

The tool, which Spotify has described as being powered by generative artificial intelligence (AI), will allow fans to create covers and remixes of songs from participating artists. It is expected to launch as a paid add-on for Spotify Premium subscribers, with the company saying it will provide an additional revenue stream for participating rights holders.

The agreement, announced on 4 August, follows a deal Spotify reached with Universal Music Group (UMG) in May. Until now, the initiative had been focused on UMG’s catalogue.

Spotify and UMG have said the tool will be based on the principles of “consent, credit and compensation”, with participating artists and songwriters retaining control over whether their music is included.

“This agreement with Merlin ensures participating artists are credited and compensated, and that every creation drives listeners back to the original work,” Spotify senior vice-president and global head of music Charlie Hellman said. “We’re proud to extend this model to the independent community, and we look forward to welcoming more partners as we continue to build.”

Under the Merlin agreement, artists represented by labels covered by the organisation’s Spotify licensing deal will have the option to participate in the initiative.

“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,” Merlin CEO Charlie Lexton said.

“Spotify’s respect for our members’ and their artists’ rights is exemplary, making our decision to work on this project an easy one,” he added.

Spotify first announced plans for what it called “artist-first AI music products” in October 2025, in partnership with UMG, Sony Music Group, Warner Music Group, Merlin and Believe. At the time, the companies described the initiative as a plan to pursue licensing arrangements rather than a series of completed agreements.

As of 4 August, Sony Music Group, Warner Music Group and Believe had not announced separate licensing agreements for the fan-made covers and remixing tool.

The Merlin deal comes as Spotify reported its second-quarter 2026 financial results, including the addition of 300 million Premium subscribers, taking the service above that milestone for the first time.

Merlin represents independent labels across more than 70 countries and says its members account for about 15% of the global recorded music market. The organisation renewed its global licensing agreement with Spotify in September 2025.

The agreement is also the latest in a series of AI-related licensing deals involving Merlin. In January, the organisation licensed its members' recordings to AI music platform Udio, while it reached an agreement with ElevenLabs for its Eleven Music platform in August 2025.

The organisation has also negotiated licensing agreements with major digital platforms including Apple, Meta and YouTube.

The fan-made tool forms part of Spotify’s broader strategy of introducing paid features alongside its standard Premium subscription. In February 2025, Bloomberg reported that the company was considering a higher-priced “Music Pro” tier, potentially costing up to $5.99 more per month, with AI-powered remixing among the features under consideration.