Spotify is preparing to launch a paid AI tool that lets fans create their own versions of songs, with a release planned for early 2027, the Financial Times reported on Friday, citing people familiar with the plans.
The company could unveil the product around the Grammy Awards in February, although the launch date and pricing are still under discussion.
The tool could cost an additional $4 to $5 a month on top of a Premium subscription, according to the FT. Users would be able to generate new versions of existing songs, perhaps turning a folk track into a dance remix or imagining one artist performing another’s music.
There would be limits. Only artists who explicitly agree to participate would be available, even if their record labels have signed licensing agreements with Spotify.
The revenue model would also give original artists a share of the royalties generated by fan-made versions. Plays of the remixes would count towards the original songs in Spotify’s charts, the FT reported. The company is also working on ways to include these versions in playlists.
Spotify first revealed its plans in May, when it signed a licensing agreement with Universal Music Group . The deal marked the first formal agreement to use generative AI with music from Spotify’s catalogue. Both companies said artists and songwriters would have to opt in and would share in the revenue.
Since then, Spotify has reached similar agreements with independent label group Merlin, music publisher Kobalt and distributor Believe. The Believe agreement also covers artists using its TuneCore platform.
Negotiations with Sony Music and Warner Music are still ongoing, the FT reported. Neither company has announced a licensing deal with Spotify.
But the streaming service may not need all three major labels on board before releasing the product. Co-chief executive Gustav Söderström said during Spotify’s second-quarter earnings call that the company could move ahead without every major label, Music Business Worldwide reported .
Other music companies are exploring similar models. Universal has licensed its catalogue to ElevenLabs for a fan remix platform, while Deezer has introduced a remix tool that does not use AI .
For Spotify, the challenge will be turning fan experimentation with AI into a product that artists are willing to participate in, and listeners are willing to pay extra for.
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