Spotify plans AI-powered music creation tool as Premium add-on in Q1 2027
Streaming giant Spotify is reportedly gearing up to launch its much-anticipated generative AI covers and remixes tool in the first quarter of 2027, aligning its rollout roughly around the Grammy Awards season.
According to reports, Spotify is weighing a subscription add-on price of $4 to $5 per month on top of existing standard Premium memberships to access the suite of generative tools. While final pricing and exact release dates remain subject to adjustment, the framework for legalizing fan-made AI mashups and covers is steadily locking into place.
The service will operate under a controlled, rights-managed ecosystem. Under the proposed structure, only tracks belonging to rights holders and artists who have explicitly opted in will be eligible for AI manipulation. Royalties generated by fan-made remixes will flow directly back to the original songwriters and performers. Plays accrued by these AI-driven custom remixes will be credited directly to the original tracks on Spotify’s official charts.
Securing major catalog backing has been a central hurdle for the streaming platform. Major music companies including Universal Music Group (UMG), independent label network Merlin, publisher Kobalt, and distribution giant Believe / TuneCore have already signed formal licensing deals. Meanwhile, discussions with Sony Music Group and Warner Music Group are reportedly ongoing. Spotify leadership has previously indicated that a full universal major-label consensus may not be strictly necessary to move forward with the product’s debut.
As streaming platforms continue to search for new Average Revenue Per User (ARPU) growth levers, the introduction of consumer-facing creative AI could represent a major shift in how audiences interact with recorded music—transforming passive listeners into active, paying creators.
However, winning over artists remains a key challenge. Spotify and Universal Music Group have reportedly held meetings with individual artists to persuade them to make their music available for the service. However, winning over major contemporary stars has proved more challenging than securing participation from some established older artists. Artists will reportedly be able to opt in or out of the service, even if their record labels have signed licensing agreements with Spotify.
The company estimates that 7% to 8% of its US subscribers could sign up for the AI service by the end of 2028, though the new paid service might only appeal to a small fraction of paying Spotify subscribers.
Spotify declined to comment on the reports.
