Spotify payouts to music industry hit record $11B in 2025
What's the story
Spotify has announced that it paid over $11 billion to the music industry in 2025. The amount is $1 billion more than what it paid last year. According to the company, this sum accounts for nearly 30% of the total revenue generated by the recording industry. However, it's worth noting that this figure only includes royalties and doesn't account for merchandise sales or ticket revenues.
Payout breakdown
Royalty distribution and independent artists
Spotify clarified that the $11 billion isn't directly paid to musicians or artists. Instead, it goes to "rightsholders," including labels, distributors, and publishers. The company also admitted it doesn't know how much of this money actually reaches the hands of artists. However, it did reveal that about half of these royalties were paid to independent artists and labels in 2025.
Future plans
Spotify's commitment to transparency and artist support
Spotify has also promised to introduce "new solutions" to tackle issues such as scams, artist impersonation, and spam content. The company acknowledged that "AI is being exploited by bad actors to flood streaming services with low-quality slop," in a bid to steal revenue from real artists. It also plans changes in artist verification as part of these efforts.
Market strategy
Spotify's response to artist complaints and market competition
Despite the new measures, Spotify may not be able to silence ongoing complaints from artists about lower payouts compared to competitors. The company recently increased its premium subscription prices in several markets to boost profits and capitalize on its large user base for growth. At the end of Q3 2025, Spotify had a whopping 713 million monthly active users.