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Spotify Inks Deal With The Three Major Record Companies For AI Products
Bot or bop? // Image by Kait Cunniff with DALL-E
In an unprecedented move, Spotify is partnering with the three major record companies (Sony, Universal, and Warner), along with indie licensing powerhouse Merlin, and global digital distributor Believe to develop AI products that put artists and rights holders first.
The Big Play: With AI, the cat’s already out of the bag… but Spotify and the broader music industry are trying to control the narrative before mainstream AI firms make unrestricted song generation commonplace. No one wants a repeat of the piracy boom that nearly cratered the music market in the early 2000s.
Behind The Music: Spotify, the undisputed leader in music streaming, now wants to expand its reign to include the “responsible” use of AI in music.
While details remain under wraps, the company says it will make “significant investments in AI research and product development.”
The effort will be built around four pillars: upfront agreements with every stakeholder, opt-in frameworks for generative tools, new artist revenue streams, and features that deepen fan connections.
Sony, Universal, Warner, Merlin, and Believe are just the start — Spotify plans to add more distributors and rights holders in the near future.
Sound Check: Spotify and its partners took a clear shot at Silicon Valley in their announcement: “Some voices in the tech industry believe copyright should be abolished. We don’t. Musicians’ rights matter. Copyright is essential.”
The statement underscores the industry’s stance — not anti-AI, but pro-regulation. That’s why Spotify and YouTube get partnerships, while Suno and Udio get served. For Spotify, it’s also a way to keep its already massive library from being flooded with AI slop — the company has already removed 75 million “spammy” tracks and introduced new upload guidelines.
Next Up: If executed right, a suite of industry-backed AI tools could be a major boon to artists’ bottom lines — and maybe even give Spotify its long-awaited social-network moment.
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Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.