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Merlin Signs Licensing Agreement With Spotify for AI Remixing Tool
Merlin, the trade body representing independent record labels, has signed a licensing agreement with Spotify allowing the streaming platform's AI remixing tool to be used with songs from its member catalogue. Announced on 4 August, the deal lets artists on Merlin-affiliated labels choose whether to participate, extending a feature first launched with Universal Music Group in May. The move matters because it broadens access to a contentious new AI product to roughly 30,000 independent labels, positioning Spotify's remixing tool as an emerging, opt-in revenue stream rather than an imposed technology.
Under the agreement, participating artists retain credit and compensation, and the remixing feature will be offered to premium subscribers as a paid add-on, directing listeners back to original recordings. Spotify co-CEO Alex Norström said the deal follows the company's "three C's" of consent, credit and compensation, while Merlin chief executive Charlie Lexton welcomed the chance for members to opt in to a new income source. Merlin was previously among five major and independent groups, alongside UMG, Warner Music Group, Sony Music and Believe, that partnered with Spotify last October on artist-first AI principles; separately, industry bodies have proposed voluntary AI-labelling and chart-eligibility rules, though neither has yet been adopted.
In short
- Merlin and Spotify sign deal enabling AI remixing of independent artists' songs.
- Deal covers about 30,000 labels, following Spotify's May agreement with UMG.
- Feature is opt-in, paid add-on for premium subscribers, with artist compensation.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
This deal responsibly balances innovation with artist protection through genuine opt-in consent, meaningful compensation, and artist credit. Independent artists gain access to new revenue streams and participation in emerging technology whilst remaining free to decline if they object to AI remixing. The framework aligns with established industry principles and ensures listeners are directed to original recordings, preventing the technology from displacing artists. This is precisely how AI integration should work: with artist agency, transparency, and fair terms.
The case against
AI remixing tools fundamentally threaten the value of musicians' creative work, regardless of compensation frameworks. Whilst presented as optional, economic pressures and competitive dynamics may make participation feel mandatory for artists seeking visibility, and compensation mechanisms rarely reflect the true creative value AI extracts. The underlying concern runs deeper than any single deal: accepting this technology now establishes precedent for how AI may be deployed in the music industry with increasingly fewer safeguards. The industry should have negotiated stronger protections and explored alternatives before normalising AI-generated variations of artists' work.
Explained simply
Merlin is a trade body for independent record labels, which release music outside the largest global music groups. Its members include around 30,000 labels, and artists on those labels can decide whether their music is included in the agreement.
Spotify is a music streaming service developing an AI tool that lets listeners make remixes from recordings. The arrangement is part of a wider debate about how AI can use music and how artists should be credited and paid. It matters because it could offer participating artists another source of income while giving Spotify access to more independent music.
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