Spotify and Universal Music Strike Landmark Deal for Fan-Made AI Covers and Remixes — Stock Up 16%

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Spotify and UMG announced a licensing deal allowing Premium subscribers to create AI-generated covers and remixes of songs — the first time Spotify will host user-created AI content. The feature launches as a paid add-on with artist revenue sharing on an opt-in basis. Financial terms undisclosed but Spotify shares surged ~16% on the announcement. Billboard describes it as a turning point in the relationship between generative AI and the music industry.