Spotify and Merlin announced a licensing agreement that lets independent artists opt into a paid fan-made covers and remixing tool. Merlin represents independent labels covering 15% of the global recorded music market, extending the tool beyond major labels. The feature is part of Spotify's broader push into AI-driven engagement, including Prompted Playlist and AI DJ, as second-quarter revenue rose 14% year-over-year to about $5.56 billion and net income reached roughly $634 million. Co-CEO Gustav Soderstrom sold 20,833 shares on August 3 for $10.6 million under a pre-set Rule 10b5-1 plan, cutting his direct holdings by 51%. Spotify's stock trades at a forward P/E of 35.34, down 37% from its peak, as the market prices in growth that leaves little room for error if adoption of paid extras disappoints.
Spotify Technology SALicensing deal expands paid fan remix tool to independent artists, boosting engagement and potential revenue.
Merlin, Inc.