On October 30th, it was reported that the music streaming platform Spotify plans to launch a AI music mixing service in the first quarter of 2027. This service will allow paid subscribers to use artificial intelligence to rearrange or cover existing songs, with the company considering charging an additional fee of $4 to $5 per month. The company is aiming to release this service around the time of the Grammy Awards next February, but the exact launch date and pricing have not yet been finalized.
This service will allow users to adapt folk songs into dance music, or use AI to simulate one singer performing another singer's works. Unlike the AI music tool, which generates entirely new songs through text commands, the new service of Spotify is mainly aimed at existing copyrighted musical works that have already been authorized.
Copyright negotiations are still underway, and artists have the option to decide for themselves whether to participate or not.
Currently, Spotify has reached licensing agreements with Universal Music Group, the independent record label licensing organization Merlin, and the French music company Believe. Negotiations with Sony Music and Warner Music are also ongoing.
However, obtaining authorization from a record company does not mean that the artists under its umbrella must participate. According to the current arrangements, even if a record company has signed a contract with Spotify, the artists still have the option to decide for themselves whether to allow their works to be used in AI's mixing services.
Spotify and Universal Music Group are separately communicating with their artists to secure more music works for licensing. According to informed sources, some veteran artists have shown interest in this service, but it is more difficult to persuade current popular singers to participate. Some artists have already publicly opposed the use of AI technology in their music works.
AI Remix works will split from the original singer, Spotify seeks new subscription revenue
According to the proposed business model, users will generate remixes or cover versions using AI, which will bring copyright revenue to the original artists. Spotify is still developing related features that allow these works to be included in the platform's playlists, and their playback counts will be counted towards the original songs' rankings in Spotify's music charts.
This arrangement is aimed at encouraging artists to open up their work licenses, while also helping Spotify to generate more revenue from its existing subscribers. In recent years, the company has continued to develop value-added services for core music enthusiasts, including priority purchase rights for concert tickets and expanded audiobook services.
Spotify previously proposed to investors to achieve an average annual revenue growth of about 15% by 2030. Bernstein Analyst Ian Moore expects that by the end of 2028, approximately 7% to 8% of American subscribers may choose to pay for AI music services. If this prediction comes true, the new paid feature is expected to become an important source for Spotify to maintain medium to long-term revenue growth.
