Spotify signs Kobalt deal for AI-powered covers and remixes tool

The agreement, announced on 13 August, follows Spotify’s deal with Merlin on 4 August. UMG became the first major music company to reach an agreement with Spotify for the tool in May, covering both recorded music and music publishing.

The feature is expected to launch as a paid add-on for Spotify Premium subscribers, although Spotify has not confirmed a release date or pricing. The company has described it as a generative AI-powered tool that will allow users to create covers and remixes using music from participating artists and songwriters.

Spotify said the licensing framework is intended to give songwriters and artists a share of the value generated by the new creations.

“Covers and remixes begin with the song, which makes music publishers and songwriters essential partners in building this tool the right way,” Spotify senior vice-president and global head of music Charlie Hellman said.

“This agreement with Kobalt is grounded in consent, credit, and compensation for the songwriters who take part, and every creation drives listeners back to the original song. We look forward to welcoming more partners as we continue to build.”

Kobalt CEO Laurent Hubert said the agreement would provide songwriters with new opportunities to engage with audiences.

“Spotify’s new AI-powered creative tools are built on a foundation of ethical training, fair compensation, and intentional guardrails,” Hubert said.

The agreement comes as music companies and technology platforms continue to negotiate licensing arrangements governing the use of copyrighted works in generative AI systems.

Spotify has said participation in its AI covers and remixes tool will be based on consent. During the company’s second-quarter 2026 earnings call on 4 August, co-CEO Alex Norström described the framework as the “3 Cs”: consent, credit and compensation.

Norström said artists would need to consent to their work being included in the catalogue available for users to create covers and remixes.

The UMG agreement operates on an opt-in basis, with the tool available for music from participating artists and songwriters. Under Spotify’s Merlin agreement, labels within the organisation’s network are covered by the licensing framework, while individual artists can choose whether to make their catalogues available.

Spotify and Kobalt have not yet disclosed how participation will work under their agreement, including how songs involving multiple songwriters and publishers will be handled.

Kobalt has previously entered licensing agreements with AI music platforms, including Udio and ElevenLabs. Its agreement with ElevenLabs requires Kobalt to control all of a composition’s mechanical rights.

The development comes amid wider efforts by the music publishing sector to establish licensing frameworks for AI. The National Music Publishers’ Association announced an industry-wide agreement with Udio in June, while several major music companies remain involved in legal disputes with AI music platforms over the use of copyrighted material.

Spotify has not yet confirmed when the covers and remixes feature will become available. Co-CEO Gustav Söderström has said the company plans to first release a research preview to a limited group of users before a wider launch.