Merlin, which licenses digital rights for independent labels, has agreed a deal allowing its members' music in Spotify's upcoming AI remix and cover feature. It was announced alongside Spotify's second-quarter results.
The tool will be a paid add-on, and artists who opt in share in the extra revenue. Merlin frames it as a choice for its members, while Spotify says creations will credit and pay artists and lead fans back to the originals; Spotify already has a similar deal with Universal.
Spotify says it will launch when ready and does not need all the majors on board. Revenue shares and opt-outs are still unclear, and rival licensed services from Udio and Klay are also coming.
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