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Universal Music Group licenses recordings and publishing to Spotify for AI covers and remixes

Universal Music Group signed a deal covering recorded music and publishing for Spotify's AI covers and remixes tool. Participation is opt-in for artists and songwriters.

STOCKHOLM, May 2026 Universal Music Group signed an agreement in May 2026 with Spotify covering both recorded music and publishing for Spotify's AI-powered covers and remixes tool. Financial terms were not disclosed.1

Terms of the deal

The tool will be a paid add-on for Spotify Premium users and is powered by generative AI. Participation is opt-in, and only songs from artists and songwriters who agree to take part are available.1 Spotify had not confirmed a price or launch date when the later deals were announced.

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.

Background

Spotify described the tool's consent-based framework on its August 2026 earnings call as the 3 Cs, and later signed Merlin on August 4, 2026 and Kobalt on August 13, 2026.1 Spotify also announced in October 2025 that it would develop AI products with Sony, Universal, Warner, Merlin and Believe.2

What it means for data sellers

Large catalogs can license into AI features of existing platforms, not only into new AI startups. Sellers should look at consent, credit and compensation terms, which Spotify and Kobalt both named as the pillars of the program.

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. Spotify AI plan. Spotify announced in October 2025 that it would build AI products through upfront agreements.
  2. Universal deal. Universal signed in May 2026 for recordings and publishing.
  3. Opt-in. Only songs from artists and songwriters who agree are available.
  4. Next steps. Spotify planned a research preview for a subset of users.

Takeaways for companies with data

  • Platforms are paying for rights up front rather than seeking forgiveness later.
  • Opt-in layers let artists decide, which affects the volume of licensed music.
  • A paid add-on model means rightsholders may share in new revenue.

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)
  2. Spotify partners with Sony, Universal, Warner and more to develop AI music products (Variety, October 2025)

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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.