Spotify Expands Its AI Remix Tool for Fans: Merlin Brings In 30,000+ Independent Labels

On August 4, 2026, Spotify announced an expansion of its AI project for creating remixes and covers: Merlin, an organization representing more than 30,000 independent labels and distributors, has joined Universal Music Group in backing the new paid tool.

How the AI remix tool works

The paid service will let fans create AI-generated remixes and covers of music by artists who have explicitly agreed to take part. Every artist joins on an opt-in basis; nobody is enrolled by force. According to Spotify, each time tracks are used, the creator receives attribution (credit as the author) and a payment.

• Reach through Merlin: more than 30,000 independent labels and distributors
• Universal Music Group is already a confirmed partner in the project
• Access to the tool will be paid
• Participation is opt-in only: without the artist's consent, their music is not available to the AI
• Authorship is preserved, and compensation is provided for each use

Why did Merlin join the deal?

Merlin has traditionally served as a negotiating platform for the independent sector, securing terms for small labels that are comparable to what the major labels get. Merlin's inclusion means that thousands of independent artists, from indie rock to the electronic scene, will get the same guarantees of consent, attribution and compensation as Universal Music Group's labels. That is unusual for the industry: in most technology deals, the majors signed first, while independents joined later and often on less favorable terms.

The scale of Merlin's reach, more than 30,000 labels and distributors, means that even before the official launch, Spotify is assembling a legitimate pool of AI content that covers a significant share of the world's independent catalog.

"The tool will let fans engage creatively with the music of their favorite artists, while ensuring that rights holders receive proper recognition and compensation,"

Spotify said in a statement.

What this means

Spotify is building a two-sided monetization model for AI music that covers majors and independents at the same time, on comparable terms. If an opt-in scheme with guaranteed attribution and compensation becomes the industry standard, AI remixes will turn from a threat to rights holders into a new source of revenue, for artists and for the platform alike.

FAQ

Can artists opt out of participating?

The scheme works strictly on an opt-in basis: a track enters the AI tool only after the artist gives explicit consent. Without permission, the music is not available for remixes and covers.

How many labels does the Merlin partnership cover?

Merlin represents more than 30,000 independent labels and distributors worldwide, making it one of the largest associations in the independent music market.