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.