Spotify says it paid out $11 billion in royalties in 2025, marking a $1 billion increase compared to the previous year.
The company claims this amount represents nearly 30 percent of the global recorded music industry’s revenue, highlighting Spotify’s growing role in music distribution.
However, this massive figure does not mean artists personally received $11 billion. The money was paid to rightsholders, including record labels, publishers, and distributors. How much artists actually earn depends on their contracts. Major-label artists may receive as little as 15 percent, while independent artists often earn 50 percent or more, depending on their deal.
Spotify also revealed that around half of the royalties went to independent artists and labels, including self-published musicians using platforms like DistroKid or TuneCore. Still, the company admitted it does not have detailed data showing exactly how that money is divided, especially as concerns grow around “ghost artists” and low-effort content flooding the platform.
Another key issue is how streaming payouts work. Since royalties come from a fixed revenue pool, more streams mean lower per-stream earnings. Spotify currently keeps about 30 percent of revenue, and artists with fewer than 1,000 streams receive no payout at all. This system continues to draw criticism from musicians worldwide.
Looking ahead, Spotify says it plans to introduce stronger artist verification, crack down on scams and AI-generated spam, and bring more human-curated playlists to reduce overreliance on algorithms. Despite these promises, many artists still argue that Spotify pays less than rival streaming platforms.
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