Spotify and Kobalt Ink Licensing Deal Covering AI Remixes, Covers

Spotify and Kobalt have signed a licensing agreement covering AI-generated covers and remixes, the companies announced today, ensuring that participating songwriters will receive a share of revenue from the new tools.

The deal follows a recently revealed partnership between BMG and AI music company Suno. The Spotify-Kobalt announcement is brief, at 229 words, and largely consists of executive statements.

The release makes no reference to Primary Wave, indicating that Kobalt‘s publishing division entered the agreement independently. Specifics about the copyrights involved were not disclosed, a structure that could allow songwriters and rightsholders to opt in.

During Spotify’s second-quarter earnings call, executives said the AI product does not require all three major music companies to be on board. Warner Music Group (WMG) CEO Robert Kyncl, who has criticized what he calls “AI resistance,” was non-committal when asked about the status of his company’s licensing talks with Spotify.

WMG has set high expectations for its own agreement with Suno, which reportedly has millions of paid subscribers. Spotify, despite its large user base, may face challenges in established markets where subscription price increases are already frequent.

“Covers and remixes begin with the song, which makes music publishers and songwriters essential partners in building this tool the right way,” said Spotify’s Hellman. “This agreement with Kobalt is grounded in consent, credit, and compensation for the songwriters who take part, and every creation drives listeners back to the original song. We look forward to welcoming more partners as we continue to build.”

“Fans have always sought deeper engagement with the songs they love, whether through listening or creating their own covers and remixes. Spotify’s new AI-powered creative tools are built on a foundation of ethical training, fair compensation, and intentional guardrails. This agreement is designed to ensure our songwriters can connect with their audience in unprecedented ways, while directly benefiting from the creative opportunities these new features provide,” said Kobalt’s Hubert.