Spotify has announced a new feature developed in collaboration with Universal Music Group that will allow users to create remixes and covers generated with artificial intelligence of songs by UMG artists. The possibility will only be accessible to artists who have given their consent and will involve an additional cost compared to the standard subscription. Both the original artist and the song writer will receive a share of the revenue generated by user-created content.
“For the first time, fans will be able to legally createcovers and remixesfrom the catalogs of participating artists and songwriters, with the value created shared between both the original artist and the songwriter,” said Charlie Hellman, head of Spotify’s music division, during the company’s Investor Day.
Until now, Spotify has banned AI-generated music derived from a specific artist’s work without their explicit permission, while allowing the uploading of AI-generated music in general, including content associated with artists whose image and identity were created using artificial intelligence.
The agreement places Spotify in direct competition with Suno and Udio, the two market-leading AI-based music apps, both of which are experiencing strong growth. After initially allowing users to create music with AI without deals with artists or record labels, both startups have changed course in recent months.
Udio has signed agreements with Universal Music Group and Warner Music Group, which in turn has reached an agreement with Suno.
UMG and Sony are, however, still in dispute with Suno, with proceedings underway in a US federal court in Massachusetts.
Hellman said the feature will give artists and songwriters “an entirely new source of income, on top of what they already earn on Spotify.”
Universal Music Group CEO Lucian Grainge called the initiative “strongly artist-centric and powered by responsible artificial intelligence,” saying it will “spur growth across the entire ecosystem.”
Spotify also announced during investor day that it will offer paid subscribers early access to concert tickets from their favorite artists before general sales.
The new service, called “Reserved“, will launch in the United States this summer, before expanding to other markets.
Subscribers will be selected based on listening data, including how often they stream a particular artist, the variety of songs they play from that artist’s catalog, and whether or not they have saved songs to their library.
They will have approximately 24 hours to purchase up to two tickets through a partner ticketing platform, the company said.
Spotify said the initiative will help get tickets to real fans instead of touting bots, which have long caused problems for both spectators and artists.