AI Music Tools: Artists Gain Control & Royalties

Major record labels are adopting a strategy to embrace and monetize AI-generated music, viewing it as an opportunity to generate more royalties. Universal Music Group (UMG) and Spotify have announced a new deal to launch a tool enabling fans to create remixes and covers of songs from participating artists. This initiative extends a template previously seen with deals UMG and Warner Music struck with AI service Udio.

The new Spotify tool will be a paid add-on for Premium subscribers, with revenue shared among participating artists and songwriters. Spotify's Co-CEO Alex Norström emphasized that the product is built on "consent, credit, and compensation." UMG's chairman and CEO, Sir Lucian Grainge, described the initiative as "firmly artist-centric, rooted in responsible AI." Udio's CEO noted that these partnerships could yield valuable data on audience preferences and potential new creative directions for artists.

UMG's chief digital officer highlighted that the company's AI goals include centering the conversation on artists and defending their rights while building creative and commercial opportunities. He cited the prevalence of modified music on social media as evidence of a strong demand for such services. Artists opting in will gain significant control over fan interactions and economic participation, a contrast to the current landscape with limited control and minimal economic benefits.