Edgar Cervantes / Android Authority
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TL;DR
- Spotify is eyeing a launch of a new AI-based music service in the first quarter of 2027.
- The new offering may cost Premium subscribers an extra $4 to $5 monthly.
- This add-on would enable users to remix and cover existing songs, pending final negotiations with artists for licensing.
Spotify appears to be preparing an enticing upgrade for Premium users who are open to spending more on the platform.
The company is reportedly developing an AI-driven service scheduled for early 2027, with a price consideration of an additional $4 to $5 monthly for its Premium subscribers.
Sources indicate that this new feature would allow subscribers to use AI technology in creating remixes and covers of existing tracks.
Spotify aims to launch this service in the first quarter of 2027, potentially coinciding with the Grammy Awards in February. The platform is also negotiating with major record labels for the necessary licensing arrangements.
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This potential new price point is significant, especially for those already paying for a Spotify Premium subscription. The proposed service would provide an optional additional cost, but it could greatly increase the total expenditure for those seeking premium features.
Bernstein analyst Ian Moore suggests that by the end of 2028, around 7% to 8% of Spotify’s U.S. subscribers might opt for the AI service. While this could become a viable revenue stream for Spotify, it indicates that the feature might only attract a small segment of their current paying subscribers.
At the same time, Spotify faces challenges in securing participation from artists.
The company is reportedly engaging with individual artists alongside Universal Music Group to encourage them to provide their music for the feature. However, attracting popular contemporary artists has proven more challenging than gaining support from established older musicians.
Artists will have the option to participate or decline the service, irrespective of their record labels’ agreements with Spotify.
Additionally, Spotify is working on a mechanism allowing fan-created remixes to be included in playlists, where their streams would contribute to the original songs’ charts. Original artists would receive royalties from these remixes.
Spotify co-CEO Gustav Soderstrom has claimed that this service could present artists with new revenue opportunities. Whether this will persuade both artists and subscribers remains to be seen.
