NEW YORK, United States (AFP) — Music streaming giant Spotify is teaming up with Universal Music Group to let users create AI-powered remixes and covers of songs by artists on the label — for an extra fee on top of a standard subscription.

The new feature, announced Thursday, will only apply to artists who have given their consent, and both the original performer and songwriter will receive a share of any revenue generated.

“For the first time, fans will be able to legally create covers and remixes from participating artists and songwriters’ catalogues, with both the original artist and the songwriter sharing in the value created,” said Charlie Hellman, Spotify’s head of music, speaking at the company’s investor day.

Until now, Spotify had banned AI-generated music derived from a specific artist’s work without their express authorisation, though it does allow AI music to be uploaded more broadly, including content associated with artists whose image and identity were generated using artificial intelligence.

The deal puts Spotify in direct competition with Suno and Udio, the two dominant AI music apps on the market, both of which have been posting strong growth.

After initially allowing users to create AI music without agreements in place with artists or labels, both startups have shifted course in recent months.

Udio has signed deals with Universal Music Group and Warner Music Group, which also reached an agreement with Suno.

UMG and Sony are nonetheless still in litigation with Suno, with proceedings ongoing before a US federal court in Massachusetts.

Hellman said the feature would give artists and songwriters “a brand new source of income on top of what they already earn on Spotify.”

Universal Music Group CEO Lucian Grainge called the initiative “firmly artist-centric, rooted in responsible AI,” saying it would “drive growth for the entire ecosystem.”

Also announced at the investor day, Spotify said it would give paying subscribers early access to concert tickets for their favourite artists before they go on general sale.

The new service called “Reserved” is launching in the United States this summer before expanding to other markets.

Subscribers will be selected based on listening data — including how often they stream a given artist, the range of tracks they play from that artist’s catalogue, and whether they have saved songs to their library.

They will have around 24 hours to purchase up to two tickets through a partner ticketing platform, the company said.

Spotify said the initiative would help route tickets to genuine fans rather than scalper bots, which have long frustrated both concertgoers and artists.