Merlin brings 30,000 independent labels to Spotify's AI remix project
Merlin joins Spotify's consent-based AI music initiative
Spotify has added Merlin, a licensing partner for independent labels and distributors, to its forthcoming product for fan-made AI covers and remixes. The agreement brings more than 30,000 labels in Merlin's network into an initiative that already includes Universal Music Group.
Spotify teased the product again during its second-quarter earnings call. It will allow fans to create covers and remixes from the work of artists who choose to participate. The company did not provide a release date, but said a research preview would initially be available to a subset of users.
The expansion builds on Spotify and Universal's consent-based AI remix plan, which established artist permission as a defining condition of Spotify's proposed approach and involved Universal Music Group.
Consent, credit and compensation shape the model
Spotify is distinguishing the project from services that generate fully artificial songs. Co-CEO Gustav Söderström described the company's focus as “real artists, not fake artists,” while co-CEO Alex Norström said artists must consent before their work enters the catalog.
Norström also identified credit and compensation as central parts of the product. Spotify presents the combination as a legal route into interactive AI music: artists approve participation, retain attribution and receive an additional revenue opportunity when fans use their work.
The company has said the tool will be offered as a paid add-on. Spotify also told investors that it does not need access to a complete music catalog before beginning the research preview, allowing the service to start with participating rights holders and a limited group of users.
Why the catalog strategy matters
The announcement arrives as AI-generated music occupies a growing share of streaming uploads. Deezer has reported that more than 50% of its daily track uploads are generated with AI, compared with 10% in January 2025. That volume highlights the distinction Spotify is trying to make between unrestricted generation and licensed interaction with existing artists' work.
Söderström argued that conventional generative music will develop with or without Spotify, but that consent-based covers and remixes require the platform's role. Merlin's participation broadens the pool of independent rights holders that could take part, although individual artists must still agree to include their work.
Practical implications for businesses
For companies developing generative products around protected material, Spotify's plan offers a concrete operating framework: secure permission before use, preserve clear attribution, define compensation and begin with a controlled preview. The unresolved launch date means the execution remains to be tested, but the stated structure shows how rights management can be designed into an AI service rather than addressed after release.