Spotify adds Merlin-backed labels to AI remix and covers rollout

Spotify is expanding the roster of music rights holders backing an upcoming AI-powered feature that lets listeners create remixes and covers, according to a report published Thursday by Yahoo Finance.

The company said Merlin, which represents more than 30,000 independent labels and distributors, will support the tool alongside Universal Music Group. The planned product is positioned as paid, meaning users would access the functionality through a subscription or other paid offering rather than for free.

Spotify’s approach, as described in the report, aims to bring AI-generated remixing and cover creation to a mainstream audience while securing permission through intermediary rights representation. That matters because music rights for machine-generated outputs can be complex, involving both composition and sound recording permissions and a patchwork of rights holders.

The report does not spell out technical specifics of how Spotify’s “remix and covers” feature will work, such as how closely AI outputs can track an original recording, what guardrails will apply, or what rights Merlin will cover in each case. Spotify also did not provide, in the cited write-up, a detailed timeline for availability beyond describing it as an upcoming product.

Merlin’s backing is notable in the recorded-music ecosystem because the organization is designed to aggregate rights for independent companies. Independent labels, which often do not have the same scale as major labels, have been increasingly focused on how AI tools will generate value and respect licensing terms, particularly as AI adoption accelerates across the music industry.

Spotify, for its part, is leaning into AI-related creator and fan experiences as part of its broader strategy to deepen engagement on the platform. For many users, the appeal of AI remixing and covers is the ability to experiment with familiar songs without the traditional gatekeeping of studio time or production expertise, while for Spotify it is a way to increase time spent and drive revenue through a paid feature.

What remains unclear is how Spotify will operationalize licensing and revenue flows for the different categories of participating rights holders, including how permissions granted by Merlin compare to those from major-label partners. The report also does not include disclosure on pricing, expected usage limits, content moderation policies, or whether the feature will be available in specific markets first.

For now, the immediate headline is that Spotify is broadening support for its AI remix and covers concept beyond a single major-label partner, indicating that it is working to address rights clearance at scale through industry intermediaries. The next thing to watch is whether Spotify provides more details about the product’s launch date, pricing, and licensing terms for Merlin-represented catalogs as it moves toward rollout.