Kobalt Inks Licensing Deal with Spotify for AI-Powered Fan Remixes and Covers

Global music publisher Kobalt has reached a licensing agreement with Spotify for the streaming service’s forthcoming AI-powered tools that will enable users to create covers and remixes of songs by artists who have opted in. The deal adds a critical publishing component to Spotify’s efforts, which already include label-side agreements with Universal Music Group and indie licensing agency Merlin.

Kobalt estimates it holds at least a share of the publishing rights for more than 35% of the top 100 songs in the US and UK. Spotify’s earlier arrangement with Universal Music Group also covered that company’s publishing arm, UMPG.

Kobalt has been among the most active publishers in pursuing AI-music licensing. It previously struck deals with AI music platforms Udio and ElevenLabs. The ElevenLabs agreement included a provision for a 50-50 split between publishing and recording royalties, a departure from the recording-skewed model common in streaming.

The publisher now faces the task of persuading its songwriters to opt into the Spotify deal. In a January conference appearance, Kobalt CEO Laurent Hubert described the conversations. He said songwriters have been “generally inclined [to opt in] but with strings attached,” but added that “for those that view AI purely as a threat to their craft, it’s a more complicated conversation, and in some cases, it’s a conversation where you lose the argument.”