Spotify & UMG Reach New Licensing Agreements

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Spotify and Universal Music Group have unveiled new landmark recorded music and music publishing licensing agreements. The new agreement enables Spotify to create a new tool allowing fans to make covers and remixes of their favorite songs from participating artists and songwriters.

The tool will be powered by generative AI technology that will allow additional revenue streams and new ways for discovery. Artists and songwriters can directly share in the value generated through AI-driven licensed covers and remixes on the Spotify platform.

The tool will be offered as a paid add-on for Spotify Premium users and create an additional source of income for artists and songwriters.

“Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next,” says Alex Norström, Co-CEO, Spotify. “What we’re building is grounded in consent, credit, and compensation for the artists and songwriters that take part. Through each technological transformation, we have worked together with Sir Lucian and his team to evolve the music ecosystem into a richer, more beneficial experience for fans and a more rewarding outcome for artists and songwriters.”

“The most valuable innovations in the music business always bring artists and fans closer together,” adds Sir Lucian Grainge, Chairman and CEO, Universal Music Group. “That principle is at the heart of this pioneering AI-enabled superfan initiative, which is designed to support human artistry, deepen fan relationships, and create additional revenue opportunities for artists and songwriters. Building on our long track record of leading the industry through technology changes, and collaborating with Alex, Gustav, Daniel and the team at Spotify, this initiative is firmly artist-centric, rooted in responsible AI, and will drive growth for the entire ecosystem.”

Madison Hahnen
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