Spotify plans Q1 2027 launch for AI covers and remixes tool

A new era of fan creativity

Spotify is preparing to launch a new AI-powered tool that will allow subscribers to create their own versions of existing songs. According to the Financial Times, the company plans to debut this feature in the first quarter of 2027. The tool is intended to let users rework tracks, such as turning a folk song into a dance track or making a song sound as if a different artist is performing it.

Unlike some other AI music platforms that generate entirely new compositions from text prompts, this tool focuses specifically on remixes and covers. Spotify and its partners emphasized that the technology is designed for existing works rather than creating new content from scratch. This distinction is important for maintaining the connection to the original intellectual property of the artists.

The company is positioning this as a way to engage its most dedicated users while creating new ways to monetize the platform. By allowing fans to interact with music in this way, Spotify hopes to deepen the relationship between listeners and the artists they love. The project is part of a broader effort to generate more revenue from the platform's most active subscriber base.

The economics of AI remixes

One of the most significant aspects of the plan is how the company intends to handle royalties and charts. Under the proposed model, royalties generated by fan-made remixes will be paid to the artists behind the original songs. This ensures that the creators of the underlying music still benefit from the new versions created by the community.

Spotify also plans to integrate these remixes into its existing playlists and charts. When a fan-made remix is played, the plays will be credited to the original tracks on the platform's official charts. This system is designed to ensure that the popularity of a remix contributes to the success metrics of the original artist. It creates a loop where fan engagement directly supports the primary content owners.

Co-CEO Gustav Söderström has framed this as a potential source of income for legacy artists who may no longer be touring or releasing new music. He suggested that if a fan creates a remix of a song from the 1980s or 1990s, it increases the share of the streaming pool that the original artist receives. This could turn a passive catalog into an active source of new revenue through fan participation.

Licensing and artist opt-ins

To make the tool viable, Spotify has already secured licensing deals with several major industry players. These include Universal Music Group, Merlin, Kobalt, and Believe. The deal with Universal Music Group was the first, covering both recorded music and music publishing. Spotify is currently in negotiations with Sony Music Group and Warner Music Group to expand the reach of the tool.

However, having a label license its catalog does not mean every song will automatically be available for AI remixing. Artists will have the final say and will make their own individual decisions on whether to participate in the program. This means some major stars may choose to opt out even if their record labels have already signed the necessary agreements with Spotify.

The company has already begun meeting with individual artists to bring their catalogs into the tool. Interestingly, people familiar with the plans noted that some of today's major stars have been harder to sign up than some veteran acts. This highlights the complexity of navigating artist sentiment regarding AI and the importance of securing individual consent for these types of creative tools.

Pricing and market reach

While the exact price is not finalized, Spotify is weighing a cost of $4 to $5 per month for the AI tool. This fee would be an add-on on top of the existing subscription costs that users already pay. The company is looking for ways to increase its revenue growth, which it has targeted at mid-teens compound annual growth through 2030.

Analysts suggest that these types of paid add-ons could be a key driver in hitting those growth targets. For example, one analyst estimates that between 7% and 8% of Spotify's US subscribers might sign up for the AI tool by the end of 2028. This represents a significant opportunity to monetize a niche but highly engaged segment of the user base who want to experiment with music creation.

The launch timing is also strategic, with a potential unveiling around the Grammy Awards in February 2027. By aligning with a major music industry event, Spotify can maximize visibility for the new feature. The company is taking a measured approach, noting that they do not need a deal with every single major record company before they can begin a research preview for a subset of users.