Spotify Paid Out a Record $11 Billion to the Music Industry in 2025

Spotify has announced a new milestone, reporting that its 2025 payments to the music industry reached a record $11 billion. This figure represents an increase of $1 billion over the prior year, marking the second consecutive year of such growth. The streaming giant claims this constitutes the largest annual disbursement to music from any retailer in history. Since its founding in 2006, Spotify's cumulative payouts now exceed $70 billion.

In a company blog post, Spotify's music lead Charlie Hellman highlighted key details behind the numbers. He noted that independent artists and labels once again received half of all royalties. Hellman also provided context on Spotify's market influence, stating, "Today, Spotify accounts for roughly 30% of recorded music revenue. Last year, our payouts grew by more than 10%, while other industry income sources grew by closer to 4%, making Spotify the primary driver of industry revenue growth in 2025." This announcement comes amid ongoing criticism from musicians and songwriters regarding low per-stream payouts. It's important to note, however, that Spotify pays rights-holders—typically labels and publishers—who then distribute funds to creators after taking their share, meaning the streaming service is not the sole party determining individual artist compensation.

Hellman addressed the broader streaming economy, pointing out that over 750 million people globally now pay for music streaming monthly across all services. "As that audience has grown, we’ve also raised prices," he stated. "Since Spotify pays out two-thirds of all music revenue to the industry – almost 70% of what we take in – as Spotify revenues grow, music payouts have grown as well." He explained that the remaining revenue is reinvested into platform innovation to attract more subscribers and further grow industry revenues. "By doing all we can to innovate on behalf of the music industry, we’ve been able to deliver an unrivaled listening experience, helping connect artists with listeners who are most likely to care about their music," Hellman added.

The post detailed several initiatives designed to help artists stand out in an era where over 100,000 songs are uploaded to Spotify daily. A key focus is on "Artist Storytelling & Video," leveraging human connection as AI makes content more abundant. Upcoming features like SongDNA will allow fans to explore songwriting collaborations, creating pathways to discover new catalogs. Video content, from live performances to studio moments, is emphasized for its authentic value. For instance, behind-the-scenes clips on the KATSEYE Countdown Page helped build anticipation for their release "BEAUTIFUL CHAOS."

Protecting "Artist Identity & Trust" is another priority, with new solutions planned to combat AI-generated impersonation and scams that attempt to divert royalties. Hellman stated, "AI is being exploited by bad actors to flood streaming services with low-quality slop to game the system." Enhanced verification and credit systems aim to ensure listeners and rightsholders can trust the origin of the music. Furthermore, "Human Editorial" remains crucial. Editorial playlists, like RADAR and RNB X which helped introduce Leon Thomas's music to over 180 countries, provide a vital cultural reference point amidst algorithmic listening. In 2026, Spotify plans new programs to turn early editorial support into sustained momentum for emerging artists, bringing the human curators' voices more directly into the experience.

Finally, the connection between streaming and live events is a growing focus. "Showing up to support an artist in person has always been one of the strongest forms of fandom, and one of the most important income streams for artists," Hellman noted. To date, Spotify has helped generate over $1 billion in ticket sales by connecting fans with shows through ticketing partners. New features in 2026 aim to further help artists convert listeners into concertgoers, ensuring venues are filled with their most dedicated fans.