Spotify reportedly plans up to 39% price increase in big AI push

AI-generated music is appealing to streaming services, not least because it could potentially eliminate royalty payments and boost profits. While providers such as Qobuz are distancing themselves from AI-generated music, Tidal and Spotify already have very lax AI policies. According to a report by the Financial Times, Spotify is now planning a full-scale AI push, set to launch as early as the first quarter of 2027.

The streaming market leader is apparently adding an optional AI package to its Spotify Premium subscription, reportedly costing $4 to $5 per month, which could make the service's Premium subscription up to 39 percent more expensive. Those willing to pay these additional costs are expected to receive two main new features. First, the ability to have artificial intelligence regenerate existing songs as remixes. And second, the option to generate any song as a cover version by any band, thereby changing the song's style.

It is unclear how these AI-generated songs will affect the royalties Spotify pays to artists. The company is reportedly already negotiating with record labels, but how high or low the payments to artists will ultimately be is not yet known. Spotify is also reportedly struggling to persuade some artists to agree to the use of their music by AI. According to an analyst quoted by the Financial Times, around 8 percent of all Spotify subscribers could be paying this surcharge for AI-generated songs by the end of 2028.