Spotify announced today that it has paid out over $11 billion to the music industry in 2025, marking a $1 billion increase from the previous year's total. This payout represents approximately 30 percent of the overall revenue in the recording industry, according to the company's statements. However, it is important to clarify that this figure pertains exclusively to royalties and does not encompass revenue from merchandise sales, ticket sales, audiobooks, or podcast deals.
The $11 billion did not go directly to artists, but rather to “rightsholders,” which include record labels, distributors, and publishers. Spotify noted that it lacks transparency regarding how much of this money ultimately reaches the artists themselves, as contractual agreements can vary significantly. Artists signed to major labels may receive as little as 15 percent of their royalties, while those with independent labels may receive 50 percent or more.
Spotify stated that half of the royalty payments were directed to independent artists and labels, which includes self-released acts and those signed to independent labels. The company reported that over 12,500 artists earned more than $100,000 in royalties this year, an increase from 10,000 in 2024. However, this claim lacks independent verification.
Spotify's royalty structure is influenced by its business model, where the per-stream payout decreases as the number of streams increases. Currently, Spotify retains 30 percent of proceeds, and artists with fewer than 1,000 streams do not receive any payment. In response to ongoing criticism, Spotify has indicated plans to introduce new measures to combat scams and artist impersonation, as well as to enhance human curation in its music offerings. Despite these efforts, dissatisfaction among artists regarding payout rates compared to competitors remains prevalent.