From chaos to control: Spotify and Universal bet on licensed AI music

Spotify has struck a deal with Universal Music Group that allows subscribers to create AI-generated covers and remixes of songs from participating artists. Anna Nicolaou reports for the Financial Times. The agreement makes Spotify the first major streaming platform to launch a commercial AI music product with backing from a major record label.

Spotify co-chief executive Alex Norström defended the move by contrasting it with what he called unregulated AI “slop” already spreading across digital platforms. “There’s a lot of rogue attempts at this,” he said, arguing that Spotify wants to be “the one that’s legal” and “the one that’s controlled.”

One song, thousands of versions

The new tool will be available as a paid add-on to a standard Spotify subscription. Norström told investors the feature could turn “one song into 10,000 songs” within the app. The exact price has not been disclosed.

Norström acknowledged growing public frustration with AI-generated content but argued that Spotify’s licensing agreements, recommendation systems, and artist verification tools set its approach apart. Last month, Spotify introduced a verification badge to distinguish human artists from AI-generated content.

The announcement sent Spotify’s stock up 18 percent. Norström framed the deal as a “win-win situation” for Spotify, artists, and rightsholders.

The deal arrives amid broad unease in the creative industries. Producer Jack Antonoff recently criticized what he called “new ways you can fake making art.” Universal, home to artists including Taylor Swift and Kendrick Lamar, has previously licensed its music to AI companies such as Udio and Stability AI.

Norström argued that Spotify’s scale gives it an edge over start-ups: “Our investment per subscriber is essentially going to be minuscule. Scale begets scale here — winners win more.”

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