Spotify ready to unlock AI music derivatives for fans

A streaming giant says the tech is ready to let fans remix and interact with songs using AI, but licensing roadblocks are killing the rollout.

Spotify Co-CEO Gustav Söderström made the comments on the Q4 2025 earnings call

• Söderström broke AI music into two categories on Tuesday's analyst call.
• Net new music created from scratch is one category using AI tools.
• Derivatives of existing music, like AI-generated covers, are the second category.
• The company already has the technology and capabilities ready to unlock this.

Listeners want to interact with their favorite music, Söderström claims

• Many artists want to let fans create new revenue from existing catalogs.
• Film and TV already monetize existing IP incredibly well through licensing frameworks.
• Music has lacked the right framework to let artists monetize their catalogs similarly.
• Spotify is working with artists and industry partners on the opportunity already.

Warner Music Group CEO Robert Kyncl sees AI functionality in superfan tiers

• Kyncl told analysts that superfan tiers of the future will include AI creation.
• Creation is the ultimate expression of fandom, according to the WMG boss.
• The label is already in discussions with streaming services about higher-priced tiers.
• Co-CEO Alex Norström stressed Spotify will not do deals bad for artists.

Universal Music Group champions walled gardens for AI-generated music distribution

• UMG settled with Udio in October using a model restricting downloads outside platforms.
• Warner Music Group followed with its own Udio settlement, implementing similar restrictions.
• WMG's separate Suno deal proved notably different, allowing users to download songs.
• Suno Chief Music Officer Paul Sinclair pushes for open studios, not walled gardens.