
What happened
The Financial Times reports Spotify aims to launch an AI covers-and-remixes tool in Q1 2027, timed around the Grammy Awards and priced at $4-$5 per month on top of existing subscriptions.
Why it matters
This adds a paid AI feature on top of current subscriptions, creating a new revenue stream from opted-in songs while royalties flow to original artists.
WHO IT HITSPaying Spotify subscribers who want to create AI versions of opted-in songs will face an extra $4-$5 monthly charge, while original artists receive royalties and chart credit for those plays.
Summaries like this, every morning.
The planned add-on sits on top of Spotify's existing subscription tiers, meaning users would pay $4-$5 per month extra to create AI versions of opted-in songs. Licensing is central to the rollout: Universal Music Group, Merlin and France's Believe have signed deals, while Sony and Warner are still in talks. Royalties from these AI creations flow to original artists, and plays count toward their chart positions. Timing the launch around the Grammy Awards suggests Spotify is aiming for a high-visibility moment, though the Q1 2027 date leaves room for licensing talks to conclude.
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