Spotify says it paid out $11 billion in royalties in 2025

Today, Spotify announced that it had paid retired more than $11 billion to the euphony manufacture successful 2025. It’s an impressive-sounding number that’s a afloat $1 cardinal much than it paid past year. And, according to Spotify, that accounts for astir 30 percent of the full signaling industry’s revenue. And, according to Spotify, that accounts for astir 30 percent of the full signaling industry’s revenue. This figure, however, is purely a measurement of royalties paid to the euphony manufacture and does not see merch aliases summons sales, nor does it see audiobook royalties aliases podcasting deals.

However, it is important to statement that this doesn’t mean that Spotify paid retired $11 cardinal to musicians and artists. That money went to “rightsholders.” That includes labels, distributors, publishers, and more.

Spotify says that it doesn’t person penetration into really overmuch of that money yet finds its measurement into artists’ hands. Agreements for individual artists tin alteration greatly. However, it’s not uncommon for an enactment connected a awesome explanation to spot as little arsenic 15 percent of their royalties. Though indie labels typically connection overmuch much favorable deals, pinch 50 percent aliases much going to the artist.

Spotify says that erstwhile again, astir half of those royalties were paid to independent artists and labels. That includes DIY acts that self-release euphony done distribution services for illustration DistroKid aliases TuneCore, arsenic good arsenic those signed to indie labels. But it besides perchance includes room contented and immoderate alleged “ghost artists,” which person been the taxable of controversy. Spotify’s Global Head of Music Communications, Chris Macowski, says the institution doesn’t person much elaborate information connected really payouts to independent acts break down.

Macowski did opportunity that complete 12,500 artists generated much than $100,000 successful royalties successful 2025. That’s up from 10,000 successful 2024. Spotify claims that is much than the number of artists being stocked connected shelves successful grounds stores “at the tallness of the CD era.” However, The Verge was incapable to independently verify this claim, and Macowski was incapable to supply sourcing astatine the clip of publication.

Because royalties are calculated by dividing up a finite excavation of money, the much songs that are streamed, the little the per-stream payments are to artists. Unless Spotify decides to return a smaller trim of proceeds (it presently keeps 30 percent), the only measurement to turn that excavation is to either turn its subscriber guidelines aliases raise prices. Artists pinch fewer than 1,000 streams still person nary payout from Spotify.

In its station announcing the $11 cardinal successful royalty payments, Spotify besides teased early plans that look aimed astatine addressing disapproval it’s received. For one, it promises that “new solutions” are successful the useful to reside scams, creator impersonation, and spam content. It acknowledges that “AI is being exploited by bad actors to flood streaming services pinch low-quality slop”, successful an effort to bargain gross from existent artists, truthful it will beryllium introducing changes to creator verification.

The institution besides seems to beryllium leaning much afloat into human curation successful consequence to increasing backlash against the algorithm. It said it will “bring much of the quality sound down that curation into the listening experience.”
None of that, however, is apt to quell the continued complaints from artists that Spotify pays little than its competitors.