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

Spotify paid out yet another record sum to the music industry in 2025, according to a new announcement: $11 billion, topping its previous-year total by a billion for the second year in a row, making what they claim is the “largest annual payment to music from any retailer in history.” The company has paid out more than $70 billion to the industry since it was founded in 2006.

In making the announcement on the company’s blog, Spotify music head Charlie Hellman stressed that “Once again, independent artists and labels accounted for half of all royalties,” and also noted, “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.”

The announcement arrives against a backdrop of musicians and particularly songwriters with legitimate issues over the low payments they receive from streaming, but in that context it’s important to bear in mind that Spotify — like most streaming services — pays rights-holders, usually a label and music publisher, which then distribute the money to musicians and songwriters, after taking their percentage. While the streaming economy leaves much to be desired in terms of compensating creators, the blame is not entirely on streaming services.

Hellman also noted that “More than 750 million people around the world are now paying every month for music streaming, across all streaming services. As that audience has grown, we’ve also raised prices. 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.

“What about the other third — the money Spotify keeps?,” he continues. “That’s been our fuel to reinvest directly into the platform in ways that drive more people to pay for music streaming and continue to grow revenues for music. 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.”

In the post, Hellman goes on to detail some of the initiatives he mentions, and how they help in an era when more than 100,000 songs a day are being uploaded to Spotify:

Artist Storytelling & Video

As AI makes all kinds of content more abundant, human connection has become more valuable, not less. Helping fans better understand who artists are and what inspires them establishes real connections that turn casual listeners into long-term fans. To support that, we’re bringing more context into the listening experience, whether that’s information about the artist, the story behind a song, or moments that show how the music actually comes together. With the upcoming launch of SongDNA, for example, fans can explore the collaborations behind a song—like Addison Rae’s breakout work with Luka Kloser and Elvira Anderfjärd—and follow those connections deeper into the music. Before long, you’re finding your way into new catalogs, like Kloser’s work with Ed Sheeran or Anderfjärd’s work with Alec Benjamin.

Video also plays a big role in storytelling, and we’ve only scratched the surface. Especially now, authenticity matters more than production value. A live performance, a stripped-down version, a rehearsal, or a moment from the studio — those make the connection real. For KATSEYE, early behind-the-scenes Clips on their Countdown Page fueled anticipation by bringing fans into the journey leading up to the release of BEAUTIFUL CHAOS. 

Artist Identity & Trust

Storytelling helps fans understand who’s behind the music, and ensures authentic creativity stands out from anonymous filler. But that’s not enough on its own. Protecting artists’ identities is a top priority, and we’re building new solutions to prevent impersonation, scams, and mismatched content. 

AI is being exploited by bad actors to flood streaming services with low-quality slop to game the system and attempt to divert royalties away from authentic artists. So we’re going to introduce changes to the systems for artist verification, song credits, and protecting artist identity. It’s critical to ensuring listeners and rightsholders can trust who made the music they’re hearing.

Human Editorial

When artists start to connect with fans on Spotify, sustaining that attention becomes the next challenge. The tools artists already use in Spotify for Artists are built for exactly that, and in 2026 we’re sharpening them in ways that serve new releases especially. 

Every developing artist is looking to break out. And being added to a hand-selected editorial playlist can mark a turning point for an artist, growing exposure and streams to new heights. For Leon Thomas, pitching songs through Spotify for Artists led to editorial placements on RADAR and RNB X, introducing his music to listeners in more than 180 countries. 

Even more important than the numbers they drive, these playlists reflect human expert opinion. In a world of highly individualized listening through algorithms, editorial curation gives artists and fans a common cultural reference point.

In 2026, you’ll see us create new programs where editorial can unlock more sustained support for emerging artists that help turn early recognition into ongoing momentum. And we’ll bring more of the human voice behind that curation into the listening experience. We’ve already started experimenting with this by bringing our music editors forward through video and storytelling, where they share why a song resonated and what stood out about an artist. For artists, that means more opportunities for their music and story to come to life for listeners.

Live Shows

We believe that as fans go deeper into an artist’s world on Spotify, that connection shouldn’t live only online. 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.

Spotify helps ensure rooms are not only filled, but filled with true fans. By understanding how listeners connect with your music, we help artists reach the fans who care most, and are most likely to buy tickets.

To date, Spotify has helped artists generate more than $1 billion in ticket sales by connecting fans with live shows through our ticketing partners. In 2026, we’re building on that strength with new features that will help more artists turn listening into tangible support from their fans.