Spotify plans to launch its AI-powered covers and remixes tool in the first quarter of 2027.
That’s according to the Financial Times, which reported the timeline on Friday (October 30), citing people familiar with the plans.
The company is weighing a price of USD $4 to $5 per month for the tool, on top of existing subscription fees, one of those people told the FT.
The product could be unveiled around the Grammy Awards in February, according to the report.
The 69th Grammy Awards are scheduled to take place on February 7, 2027.
Spotify declined to comment to the FT, whose sources cautioned that neither the timing nor the pricing has been finalized.
The tool will let paying Spotify subscribers use AI to make their own versions of songs by artists who have opted in.
Examples given by the FT include reworking a folk song as a dance track or creating a version of a song that sounds as if a different artist is covering it.
Under Spotify’s proposed plan, royalties generated by fan-made remixes would be paid to the artists behind the original songs, the report said.
The company is also building a way for remixes to be included in playlists, with their plays credited to the original tracks on Spotify’s charts, the FT’s sources said.
Spotify has so far signed licensing deals for the tool with Universal Music Group, Merlin, Kobalt, and Believe.
UMG came first, announcing its agreement covering recorded music and music publishing on May 21 at Spotify’s Investor Day in New York.
Merlin followed on August 4, and Kobalt signed on August 13.
Believe struck its deal on October 20, covering participating artists and labels at Believe and its self-release platform, TuneCore.
The FT reported that Spotify is still negotiating agreements for the tool with Sony Music Group and Warner Music Group.
On Spotify’s Q2 2026 earnings call on August 4, Co-CEO Gustav Söderström said the company did not need licensing deals with every major record company before going live.
“So the answer is we do not need a deal with all the majors,” said Söderström. “We would like to have as many artists as possible, obviously, but we don’t expect to have all artists.”
Söderström said at the time that the next step would be a research preview for a subset of users, and that Spotify would launch the tool “when it’s ready.”
Spotify and Universal have been meeting with individual artists in an effort to bring their catalogs into the tool, people familiar with the plans told the FT.
One person told the FT that today’s major stars have been harder to sign up than some veteran acts.
Artists will make their own decision on whether to take part, even if their label has already licensed its catalog to Spotify for the tool, the report added.
Universal-signed Olivia Rodrigo addressed the use of AI in her own music, rather than Spotify’s tool specifically, in an interview with The Hollywood Reporter published earlier this month.
“I would never use AI in any of my music,” Rodrigo said, calling it a “hard line.”
Speaking at the Goldman Sachs Communacopia + Technology Conference on September 9, Söderström framed the tool as a new source of income for legacy artists.
“If one of your fans creates a remix of your song, that actually increases the share of the streaming pool that you get,” said Söderström.
“If you are an artist today, from the 1980s or 1990s, the way that you would make more money today is to hope that some other artist would create a remix or cover of your song,” Söderström added. “Now you can hope that all your fans actually create remixes and covers of your songs.”
The FT noted that Spotify’s tool differs from AI music generators such as Suno, which let users create new songs from text prompts.
Announcing their deal, Spotify and Believe said the tool is “designed specifically for AI-powered remixes and covers, not entirely new works.”
The tool is one of several products Spotify is developing to generate more revenue from its most engaged users.
At its Investor Day in May, Spotify introduced Reserved, a ticketing feature that holds two tour tickets for each of an artist’s most dedicated Premium fans ahead of the general sale, with Live Nation as its launch partner. Reserved went live in the US in June.
Spotify also used the event to set a target of mid-teens compound annual revenue growth, at constant currency, through 2030.
Spotify’s latest shareholder update shows total revenue grew 16% YoY (14% at constant currency) to €4.97 billion (USD $5.72 billion) in Q3 2026.
Its Premium subscriber base reached 306 million at the end of September.
Bernstein analyst Ian Moore estimates that 7% to 8% of Spotify’s US subscribers could sign up for the AI tool by the end of 2028, according to the FT.
Moore said paid add-ons could help Spotify hit its revenue growth targets.
In February 2025, Bloomberg reported that Spotify was considering charging up to USD $5.99 per month on top of Premium for a ‘Music Pro’ tier.
AI-powered remix features were among the perks Bloomberg said could be included, alongside early access to concert tickets.Music Business Worldwide
