Spotify and Kobalt announced a licensing agreement. The deal enables fans to create AI-powered covers and remixes with direct songwriter compensation.
What We Know Spotify’s new creation tool launches as a paid add-on for Premium subscribers. Importantly, songwriters receive direct compensation whenever someone licenses a cover or remix through the platform. Kobalt represents thousands of independent publishers, making this agreement significant for music creators across the ecosystem. Additionally, the model drives listeners back to original compositions, creating value throughout the music chain.
What they said Charlie Hellman, SVP and Global Head of Music at Spotify, explained the partnership’s foundation: “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.” Meanwhile, Laurent Hubert, CEO of Kobalt, emphasized the ethical structure: “Fans have always sought deeper engagement with the songs they love. Spotify’s new AI-powered creative tools are built on a foundation of ethical training, fair compensation, and intentional guardrails.”
What Remains Unclear The exact rollout timeline hasn’t been publicly announced yet. Furthermore, Spotify hasn’t disclosed which songwriters and artists will participate initially. Moreover, specific compensation rates for different creation types remain undisclosed. Additionally, the platform hasn’t confirmed additional publisher partnerships, though more deals appear likely.
What It Means This shift represents a major change in songwriter compensation models. Consequently, AI-powered creation tools continue gaining mainstream adoption across the industry. Therefore, independent publishers now hold increased leverage in platform negotiations. Finally, fan engagement with music will likely deepen significantly.
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David Hill serves as a Music Radio Editor, Columnist and Features writer for Barrett Media. A radio lifer with more than 30 years behind the mic, in the control room, and in the program director’s chair, David’s career spans influential stops at brands such as WIYY 98 Rock, WBAL-AM, and 99X. He has worked across multiple formats and ownership groups, including iHeartMedia and Cumulus Media, developing talent, breaking music, and navigating every major industry shift from diary to PPM and terrestrial dominance to streaming disruption. When he’s not writing or analyzing the industry, Dave runs The Tune Farm, a marketing firm built to help artists and brands grow audience the same way great radio always has—by creating connection, not just impressions. He can be reached at David@BarrettMedia.com.