Spotify and Merlin announce licensing agreement for fan-made covers and remixes
Spotify and Merlin have announced a new licensing agreement for Spotify’s upcoming fan-made covers and remixes tool, expanding the initiative to eligible independent artists and labels.
Spotify has announced a new licensing agreement with Merlin for its upcoming fan-made covers and remixes tool. The deal gives artists signed to labels covered by Merlin’s Spotify agreement the option to participate when the feature launches, extending the initiative to a significant portion of the independent music sector alongside Spotify’s existing agreement with Universal Music Group.
Spotify’s fan-made covers and remixes tool expands
Spotify and Merlin announced that artists signed to labels covered by Merlin’s Spotify agreement will have the option to make their music available for the streaming platform’s upcoming fan-made covers and remixes feature.
The tool, which Spotify previously unveiled alongside its licensing agreement with Universal Music Group, will launch as a paid add-on for Spotify Premium users. It will allow fans to create AI-powered covers and remixes using participating music, while creating what Spotify describes as “an additional revenue stream” for artists who choose to opt in.
Spotify says the initiative is built around “consent, credit and compensation”, with participating artists credited for their work and each creation directing listeners back to the original recording.
As Music Business Worldwide reports, this is the first agreement to bring the initiative to a significant part of the independent music sector, following Spotify’s earlier deal with Universal Music Group. Sony Music Group, Warner Music Group and Believe have yet to announce similar agreements.
Why Merlin’s involvement matters
Merlin represents independent labels and distributors in more than 70 countries, with its members accounting for around 15% of the global recorded music market. That makes this agreement a significant expansion of Spotify’s fan-made covers and remixes initiative into the independent sector.
The announcement also builds on Merlin’s wider AI licensing strategy. Over the past year, the organisation has signed agreements with AI companies including Udio and ElevenLabs, favouring licensed partnerships that give rights holders greater control over how their music is used.
It’s also the latest chapter in Merlin’s relationship with Spotify. Last year, the organisation extended its global licensing agreement with Spotify, continuing to secure digital opportunities for its independent label members as streaming and AI continue to evolve.
What it means for independent artists
The key point for artists is that participation is optional. Eligible rights holders can decide whether to make their music available through Spotify’s fan-made covers and remixes tool, with Spotify stating that participating artists will be credited and compensated.
For independent artists and labels, the agreement shows how licensing will play an important role in how music is used in new AI-powered features. As more platforms introduce tools that build on existing recordings, understanding your rights and how your catalogue is licensed will remain important.