Spotify Plans to Launch AI Music Remix Service Early Next Year, May Charge an Extra $4 to $5 per Month
Spotify plans to launch an AI feature in early 2027 that lets listeners create their own song remixes and cover versions, with a target launch in the first quarter of next year, possibly around the Grammy Awards in February. People familiar with the matter said Spotify is considering charging subscribers an additional $4 to $5 per month, and the launch timing and pricing have not yet been finalized. Spotify is in licensing talks with Sony Music and Warner Music, has reached partnerships with Universal Music Group, Merlin, and Believe, and artists can choose whether to participate.
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The report discloses the pricing range, launch window, and copyright negotiation progress of Spotify's AI remix feature, which can be used to observe how streaming platforms turn generative AI into a subscription value-added item.
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Spotify plans to launch a new AI feature service in early 2027, allowing listeners to create their own song remixes and cover versions. The company is currently negotiating copyright licensing and working to persuade musicians to embrace the technology.
People familiar with the plan revealed that the streaming platform aims to launch the product in the first quarter of next year, and it is expected to be officially announced around the Grammy Awards in February. One of the people familiar with the matter said Spotify is considering charging subscribers an additional $4 to $5 per month.
The people familiar with the matter cautioned that the launch timing and pricing have not been finalized and may still be adjusted.
After the media reported on the AI remix story, Spotify shares surged nearly 6% on Friday. The company declined to comment.
Spotify is negotiating licensing agreements with Sony Music and Warner Music to implement this feature. The company has already reached partnerships with Universal Music Group, the independent label licensing alliance Merlin, and French music company Believe.
People familiar with the matter said Spotify and Universal Music, the world's largest record company, have separately met with multiple musicians to persuade them to open their works for this service.
An industry source said persuading current mainstream stars is more difficult than persuading some veteran musicians. Even if record companies have signed licensing agreements with Spotify, musicians themselves can still choose whether to participate.
Spotify announced the product in May but has not disclosed further details since. In August, co-CEO Gustav Söderström told investors that the product would launch once it is ready.
The product is one of Spotify's important measures to boost subscription revenue. The company has been developing new products for core music fans, such as priority concert ticket purchases and expanded audiobook access.
Spotify has promised investors that it will maintain annual revenue growth of about 15% through 2030, leading outsiders to question how it will continue to achieve that growth target.
Bernstein analyst Ian Moore estimates that by the end of 2028, about 7% to 8% of Spotify subscribers in the United States will sign up for this AI service. He believes the new paid add-on will help the company meet its revenue growth target.
This service is different from AI music generation tools like Suno: Suno can create new songs from scratch based on text prompts, while Spotify's product lets fans adapt existing works by musicians who have authorized participation in the program.
Under the plan, royalties generated from fan-made remixes will flow to the creators of the original songs. People familiar with the matter said Spotify is also developing a supporting mechanism so that remixes can enter playlists, and plays will count toward the original songs' Spotify chart statistics.
At an investor conference in September, Söderström suggested that veteran musicians should join this AI service to increase revenue.
"If you are a musician from the '80s or '90s, in the past, if you wanted to earn more money, you could only hope that other artists would remix or cover your songs. Now, you can expect your own fans to do remixes and covers."
"If your fans make remixed versions of your songs, your share of the streaming revenue pool will actually increase." news_keyword_pub,usstock,WMG&WMG&SONY iframe below body iframe below body General statement General statement QR code at end start QR code at end start
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