Spotify has signed a licensing agreement with Kobalt covering its upcoming AI-powered covers and remixes tool.
It’s Spotify’s first deal for the tool with a music publisher outside of Universal Music Group.
The Kobalt agreement, announced on Thursday (August 13), follows the deal Spotify struck with Merlin on August 4.
UMG signed the first agreement for the tool in May, spanning both recorded music and music publishing.
The tool will launch as a paid add-on for Spotify Premium users. Spotify and UMG described it in May as “powered by generative AI technology.”
According to a press release, it will introduce “a creation model where songwriters and artists can directly share in the value generated through licensed covers and remixes on Spotify.”
Spotify says the add-on will create an additional source of income for participating songwriters.
“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.”
Charlie Hellman, Spotify
Charlie Hellman, SVP and Global Head of Music at Spotify, said of the Kobalt deal: “Covers and remixes begin with the song, which makes music publishers and songwriters essential partners in building this tool the right way.
“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.”
“Spotify‘s new AI-powered creative tools are built on a foundation of ethical training, fair compensation, and intentional guardrails.”
Laurent Hubert, Kobalt
Laurent Hubert, CEO of Kobalt, said: “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.”
Hellman‘s reference to consent points to the mechanism that decides which songs the tool can draw on.
Co-CEO Alex Norström set out that framework on Spotify‘s Q2 2026 earnings call on August 4, describing it as the “3 Cs.”
“First of all, we are looking for consent,” said Norström, who added that Spotify wants artists “to be consenting their work into this catalog so people can play around with covers and remixes based on their art.”
Participation in the UMG agreement is opt-in, with the tool available only for songs from artists and songwriters who have agreed to take part.
The Merlin deal works at two levels: labels sit under the organization’s Spotify agreement, and artists on those labels then choose whether to make their catalogs available.
That covers the 30,000 labels in Merlin‘s network.
The Spotify-Kobalt announcement does not set out how songwriter participation will work, or how songs with multiple writers across multiple publishers will be handled.
Kobalt’s existing opt-in agreement with AI platform ElevenLabs requires that Kobalt control 100% of a composition’s mechanical rights.
Kobalt licensed its catalog to Udio in April, its second deal with an AI music platform.
Spotify co-CEO Gustav Söderström recently said the next step for Spotify’s remix product is a research preview released to a subset of users, and that Spotify would launch it “when it’s ready,” with no price or launch date confirmed.
Kobalt signed a multi-year US licensing agreement with Spotify on August 13, 2025, which the companies said was intended to enable new formats and innovations.
Kobalt services over 1 million songs across 10 global offices.
The company sold recorded music arm AWAL and its neighboring rights business to Sony Music for USD $430 million in 2021, leaving Kobalt Music Publishing and collection society amra as its principal divisions, alongside a catalog of owned copyrights.
Primary Wave Music‘s acquisition of Kobalt closed on July 7 in a deal worth around USD $1.5 billion, with Brookfield investing alongside.
Hubert remains CEO, and Kobalt continues to operate as a standalone business.
Elsewhere in music publishing, the National Music Publishers’ Association announced an industry-wide agreement with Udio and an agreement in principle with KLAY at its annual meeting on June 10.
NMPA President and CEO David Israelite said the Udio deal was the first to “value songs and sound recordings equally.”
“Songs are just as important, if not more, than sound recordings when it comes to AI training,” said Israelite.
“Litigating against bad AI actors and licensing good AI partners is not in conflict,” he added. “NMPA will do both.”
Sony Music Entertainment remains in active litigation against both Suno and Udio. UMG settled with Udio but is still litigating against Suno.
Publishing typically takes around 25% of total streaming royalties against recorded music’s 75%, a gap US publishers attribute to the statutory rate-setting regime under Section 115 of the US Copyright Act.Music Business Worldwide
Spotify has made significant strides in its music publishing strategy by signing a licensing agreement with Kobalt for its upcoming AI-powered covers and remixes tool. Announced on August 13, this deal marks Spotify’s first collaboration with a music publisher outside of Universal Music Group (UMG) for this innovative feature. This follows a previous agreement with Merlin on August 4, and UMG was the first to sign on with Spotify for the tool back in May. The AI tool is set to launch as a paid add-on for Spotify Premium users and is described by both Spotify and UMG as “powered by generative AI technology.”
The new tool is designed to offer a creation model that allows songwriters and artists to share in the value generated through licensed covers and remixes on the platform. Spotify has emphasized that this add-on will provide an additional revenue stream for participating songwriters. Charlie Hellman, Spotify’s Senior Vice President and Global Head of Music, highlighted that the agreement with Kobalt is built on principles of consent, credit, and compensation for songwriters involved, ensuring that every cover or remix created will lead listeners back to the original song.
Kobalt’s CEO, Laurent Hubert, echoed this sentiment, noting that Spotify’s AI-powered tools are established on ethical foundations, ensuring fair compensation and intentional guidelines. Hubert expressed that the agreement aims to give songwriters the ability to connect with their audiences in new and meaningful ways while benefiting from the creative prospects offered by these features.
The concept of consent is a critical aspect of this initiative. Spotify’s co-CEO Alex Norström elaborated on this framework during a Q2 2026 earnings call, referring to it as the “3 Cs”: consent, credit, and compensation. Consent involves artists agreeing to allow their work to be included in the catalog that the new tool will draw from, ensuring that only those who opt-in will have their music available for covers and remixes. This opt-in approach applies to the UMG agreement and is similarly structured in the deal with Merlin, which encompasses a network of around 30,000 labels whose artists can choose to make their catalogs accessible.
While the announcement of the Spotify-Kobalt deal is promising, it does not specify how songwriter participation will be managed, particularly for songs with multiple writers across different publishing companies. Kobalt has an existing opt-in agreement with AI platform ElevenLabs that requires it to control 100% of a composition’s mechanical rights, adding another layer of complexity to the participation framework.
Spotify co-CEO Gustav Söderström has indicated that the next phase for the remix product will involve a research preview for a select group of users, with an official launch date and pricing yet to be confirmed. This move follows Kobalt’s multi-year licensing agreement with Spotify signed on August 13, 2025, which aims to facilitate innovation and new formats in the music industry. Kobalt, which manages over one million songs across ten global offices, has undergone significant changes recently, including the sale of its recorded music arm AWAL and neighboring rights business to Sony Music for $430 million in 2021, leaving Kobalt Music Publishing and its collection society amra as its main divisions.
Kobalt was also recently acquired by Primary Wave Music in a deal valued at approximately $1.5 billion. Despite these changes, Kobalt continues to operate as an independent entity under Hubert’s leadership.
In the broader context of music publishing, the National Music Publishers’ Association (NMPA) has been active in forming industry-wide agreements, including a recent deal with Udio that seeks to equate the value of songs and sound recordings in the age of AI. NMPA President and CEO David Israelite pointed out that songs are as important, if not more so, than sound recordings when it comes to AI training, emphasizing a balanced approach to litigation against unethical AI practices and partnerships with responsible AI companies.
As the landscape of music publishing evolves, it remains clear that the financial dynamics are shifting, with publishing typically receiving around 25% of total streaming royalties compared to the 75% allocated to recorded music. This disparity is largely attributed to the statutory rate-setting framework established under Section 115 of the US Copyright Act.
In summary, Spotify’s licensing arrangements with Kobalt and other music publishers signal a significant step forward in integrating AI technology into music creation while addressing the rights and compensation of songwriters. By establishing ethical guidelines, consent-based participation, and innovative revenue models, Spotify aims to redefine the relationship between artists, songwriters, and their audiences. As the tool gets closer to launch, the music industry will be watching closely to see how these agreements unfold and impact both the creative landscape and the financial structures that support artists.
