Spotify subscribers can now remix songs from thousands of independent labels after Merlin, the digital rights body that negotiates on behalf of indie labels worldwide, signed a licensing agreement with the streaming platform on 4 August.

The deal brings Merlin's member catalogues into Spotify's AI-powered fan-made covers and remixes tool, which the platform first unveiled in May alongside a separate agreement with Universal Music Group. UMG was the first label group to sign on; that arrangement covered both recorded music and publishing rights — the two revenue streams tied to a song's sound and its underlying composition — and was announced as part of Spotify's Investor Day presentation. According to Spotify, the tool is offered as a paid add-on for subscribers. (Music Week)

Spotify has framed its AI music features around what it calls the "three C's": consent, credit and compensation. In practice, that means labels and rights holders agree to participate, creators are attributed, and rights holders are paid when fans use the tool to generate remixes or alternate versions of songs. The company set out four guiding principles last October, when it announced a broader AI partnership with five record groups — Merlin alongside UMG, Warner Music Group, Sony Music and Believe. Those principles were: partnerships with labels, distributors and music publishers; artists choosing to opt in; fair compensation; and prioritising the artist-fan relationship. (Billboard)

Merlin has been building its position in AI licensing for months. In January 2026, the organisation licensed its members' recordings to Udio, a generative AI music platform. That deal established Merlin's willingness to let its members' catalogues be used in AI-driven music creation, provided the terms met its standards for consent and payment. (Music Business Worldwide)

Spotify has also been securing the publishing side. On 11 November 2025, the platform reached an agreement with the National Music Publishers' Association allowing NMPA members in the United States to enter into direct licence agreements for expanded audiovisual rights — the permissions that govern how a song's composition can be used in video and multimedia formats on the service. (Spotify Newsroom)

For fans, the practical effect is straightforward: more songs to play with. The remix tool lets paying subscribers create alternate versions of tracks they already listen to, and the addition of Merlin's indie roster — which spans labels across genres and territories — sharply expands the pool of available material beyond the major-label catalogues that were first on board.

For the independent labels Merlin represents, the deal means their artists' work is now part of a feature that, depending on uptake, could generate new royalty streams alongside standard streaming revenue. The opt-in principle means not every Merlin member has to participate; each label decides whether its catalogue is available for remixing.