Spotify plans to launch an AI music remix service in the first quarter of 2027, allowing paid subscribers to use artificial intelligence to rearrange or cover existing songs, and is considering charging an additional $4 to $5 per month. The company is aiming to release the service around the Grammy Awards ceremony in February 2027, but the exact launch date and pricing have not yet been finalized.

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Unlike AI tools that generate entirely new music from text prompts, Spotify's service will focus mainly on licensed existing music, allowing users to turn a folk song into a dance track or use AI to simulate one singer performing another singer's work.

On the copyright front, Spotify has reached licensing agreements with Universal Music Group, the independent label licensing organization Merlin, and French music company Believe, and is still negotiating with Sony Music and Warner Music. Even if record companies sign agreements, their artists can still decide for themselves whether to authorize their works for AI remixes. Spotify also plans to include AI remixes in platform playlists, count related streams toward the original songs' chart performance, and provide original artists with a share of royalty revenue.

Spotify is exploring new subscription revenue sources through AI music services. The company has previously set a goal of achieving average annual revenue growth of about 15% by 2030. Bernstein analysts estimate that by the end of 2028, about 7% to 8% of Spotify's U.S. subscribers may choose to pay for AI music services. As generative AI enters the music industry, licensing, artists' rights, and commercial revenue-sharing mechanisms will become important factors in platforms' ability to scale these services.