Spotify just built a paid-AI-covers economy with Kobalt, and it changes the whole debate

Spotify locked in a licensing deal with indie publisher Kobalt for its upcoming AI covers and remixes feature, following its earlier UMG deal for the same product. The pitch: this isn't free-for-all AI music generation, it's a paid add-on that routes money back to the artists and songwriters whose work gets remixed.

Spotify locked in a licensing deal with indie publisher Kobalt for its upcoming AI covers and remixes feature — following its earlier UMG deal for the same product. The pitch: this isn’t free-for-all AI music generation, it’s a paid add-on that routes money back to the artists and songwriters whose work gets remixed.

Translate that: AI creation → licensed songs → real rights holders → a cut of the revenue. That’s a completely different model than the “AI stole my voice” fights we’ve been covering. The real question isn’t whether this works → it’s whether indie artists actually see meaningful money, or whether the majors just found a new way to own the machine too.

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