Spotify plans to launch an AI music remix service in the first quarter of 2027, allowing paid subscribers to use artificial intelligence to rearrange or cover existing songs, and is considering an additional charge of 4 to 5 dollars per month. The company is aiming to release the service around the Grammy Awards ceremony in February 2027, but the exact launch time and pricing have not yet been finalized.
Unlike AI tools that generate entirely new music through text prompts, Spotify's service is mainly centered on licensed existing musical works. Users can adapt folk songs into dance tracks, or use AI to simulate one singer performing another singer's work.
Regarding copyright, Spotify has reached licensing agreements with Universal Music Group, the independent label licensing organization Merlin, and the French music company Believe, and is still negotiating with Sony Music and Warner Music. Even if record labels sign agreements, their artists can still independently decide whether to license their works for AI remixing. Spotify also plans to include AI remixes in platform playlists and have the related play counts count toward the original songs' chart performance, while providing a share of royalty revenue to the original artists.
Spotify is exploring new subscription revenue sources through its AI music service. The company previously set a goal of achieving average annual revenue growth of about 15% by 2030. Bernstein analysts estimate that by the end of 2028, about 7% to 8% of Spotify's U.S. subscribers may choose to pay for the AI music service. As generative AI enters the music industry, copyright licensing, artist rights, and revenue-sharing mechanisms will become important factors in platforms' large-scale rollout.