Spotify plans to launch a paid AI remix tool in early 2027

A new era of fan creation

Spotify is currently preparing a new paid feature that will allow listeners to generate their own versions of existing songs. According to a report by The Next Web citing the Financial Times, the company plans to launch this tool in early 2027. The release may coincide with the Grammy Awards in February, though specific dates remain under discussion.

The tool is designed to let fans experiment with different musical styles and arrangements. For example, a user might take a traditional folk track and transform it into a high-energy dance remix. It could also allow listeners to imagine how one specific artist might perform the music of another artist.

While the technology allows for significant creative variety, Spotify plans to place specific limits on what can be produced. The goal is to create a controlled environment where fan experimentation does not infringe on the core identity of the music. The company is also exploring ways to integrate these fan-made versions into official playlists.

Pricing and revenue sharing

The service is expected to be a premium add-on rather than a free feature for all subscribers. The Financial Times reports that the tool could cost an additional $4 to $5 per month on top of a user's current Premium subscription. This pricing structure suggests that Spotify views the high computing power required for generative AI as a premium service.

A key component of the business model is how the company intends to compensate the original creators. The revenue model will ensure that original artists receive a share of the royalties generated by the fan-made remixes. This is intended to provide a financial incentive for artists to participate in the platform's new ecosystem.

Furthermore, the impact of these remixes will be reflected in the platform's data. Plays of the fan-made versions will count toward the original songs in Spotify's official charts. This ensures that the popularity of the remixes directly benefits the visibility and ranking of the source material.

Licensing and artist opt-ins

Spotify is taking a cautious approach to legalities by requiring explicit consent from creators. Only artists who choose to participate will be available for remixing, even if their record labels have already signed broad licensing agreements with the streaming service. This gives the individual artist a level of control over how their specific likeness and music are used by AI.

The company has already begun securing the necessary rights to move forward with this project. In May, Spotify signed a formal licensing agreement with Universal Music Group to use generative AI with music from their catalog. This deal was the first of its kind to establish a framework for using AI with the company's music library.

Since that initial deal, Spotify has reached similar agreements with the independent label group Merlin, the music publisher Kobalt, and the distributor Believe. The Believe agreement is particularly broad as it also covers artists who use the TuneCore platform for their music distribution.

Ongoing negotiations and competition

Despite the progress made with independent labels and Universal, some major players remain outside the fold. Negotiations with Sony Music and Warner Music are still ongoing, and neither company has announced a formal licensing deal with Spotify yet. However, the streaming service may not need every major label to sign on before it can launch the product.

Co-chief executive Gustav Söderström noted during a second-quarter earnings call that the company could move forward without every major label. This suggests that Spotify is prepared to build a functional product even if some of the largest music entities are not initially involved in the rollout.

Spotify is not the only company looking at this space. Universal has already licensed its catalog to ElevenLabs for a fan remix platform, while Deezer has introduced a remix tool that does not utilize AI. Spotify's challenge will be making the tool attractive enough for artists to join and for listeners to pay for.