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Merlin signs with Spotify for AI-powered covers and remixes

Merlin signed a deal with Spotify covering its network of roughly 30,000 labels for the AI covers and remixes tool. Labels sign under Merlin's agreement and artists choose whether to take part.

STOCKHOLM, August 4, 2026 Merlin signed an agreement with Spotify on August 4, 2026 for Spotify's AI covers and remixes tool, covering the network's roughly 30,000 labels. Financial terms were not disclosed.1

Terms of the deal

The deal works in two layers: labels sign under Merlin's Spotify agreement, and artists on those labels then choose whether to make their catalogs available.1 Spotify planned a research preview for a subset of users and had not confirmed a price or launch date.

The public record on this agreement is limited to the announcement and the press coverage cited below. The price is listed here as: Undisclosed. The status shown, Signed, reflects the most recent reporting available on October 22, 2026, and any later amendments are not captured.

Announcements describe a headline structure only. Scope of the license, term, exclusivity, audit rights, deletion obligations and payment timing are set in the contract, and they decide how much the headline is worth in practice.

Background

Spotify's AI covers and remixes tool followed an October 2025 announcement of AI product collaboration with major labels, Merlin and Believe. Universal signed in May 2026, and Kobalt, the first publisher outside Universal, followed on August 13, 2026.1

What it means for data sellers

Sellers represented by collectives should ask how the collective splits money and what controls members have over AI features. Independent catalogs matter because buyers want broad coverage.

A seller comparing this deal with its own situation should ask what the buyer actually receives: raw data, a license to train, a license to display, or a right to build a product. Each is priced differently, and the answer should be written into the agreement rather than inferred from a press release.

How the deal came together

  1. Universal first. Universal signed with Spotify in May 2026.
  2. Merlin agreement. Merlin signed on August 4, 2026.
  3. Two-layer consent. Labels join under the deal, then artists opt in.
  4. Kobalt. Kobalt announced a Spotify deal on August 13, 2026.

Takeaways for companies with data

  • Collective deals add reach but still depend on artist-level consent.
  • Timing matters, as second and third movers inherit the template.
  • Details such as rates are not part of the public record.

Sources

Every numbered reference above points to an entry here. Figures come from these pages as of the date shown at the top of the article. Where a source reports a number it got from unnamed people, the text says so.

  1. After Universal and Merlin deals, Spotify inks agreement with Kobalt for AI-powered fan-made covers and remixes (Music Business Worldwide, August 2026)

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About the AI Data Deal Tracker

SellYourAIData tracks publicly reported sales and licenses of data to AI companies, with the price, terms and sources for each. Entries are checked against public reporting and updated as deals change. SellYourAIData was not involved in this deal. To ask what your company's data could sell for, get a free valuation. To report a deal, contact us.