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Spotify and Universal Music agree agreement to let subscribers create AI remixes

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Spotify said the new tool could create an extra stream of income for artists and songwriters. Photograph:.

Spotify and Universal Music Group have agreed on a deal that will allow subscribers to generate song covers and remixes using artificial intelligence.

Key facts

Summary

The licensing agreement is the first time the Swedish streaming company will allow listeners to use AI to create content through its platform. It is expected to be in the form of a paid add-on available on Spotify’s app. The financial terms of the deal were unclear, and the companies did not reveal which artists would participate in the licensing deal. Spotify’s shares were up 16% on Thursday, with revenue expected to grow at a “mid-teens” annual rate and gross profit margins to reach between 35% and 40% through to 2030, .