Spotify paid musicians $11 billion in royalties in 2025

Spotify said it paid out more than $11 billion in royalties to rights holders in 2025, up $1 billion from the year before. The company estimates that this amount accounts for about 30% of all revenue in the global recording industry.

Spotify clarifies that it is paying rights holders, not artists directly. The money goes to labels, distributors, publishers and other rights holders, and the share that artists ultimately receive depends on the terms of their contracts. For major labels, artists typically receive about 15% of royalties, while independent labels often offer 50% or more.

According to the service’s internal data, about half of all payments in 2025 went to independent artists and labels. This category includes both DIY artists and so-called ghost artists – profiles without a public identity, under which mostly background or playlist-oriented content is published. It also includes library music created for use as a background in playlists, videos and other media, rather than for a classic release with a separate fan base.

Spotify also said that in 2025, more than 12,500 artists earned more than $100,000 in royalties on the platform. For comparison, in 2024, there were about 10,000 of them. The company emphasizes that this is more than the number of artists represented in retail music stores during the peak of CD sales, but there is no independent confirmation of these estimates.

At the same time, the service reminds that royalties are distributed to a limited pool of revenue. The faster the total number of listenings grows without a corresponding increase in revenue, the lower the payout per play becomes. Spotify keeps about 30% of the platform’s revenue, and tracks with fewer than 1,000 listenings do not bring any payouts at all.

Separately, the company announced upcoming changes aimed at combating fraud, fake profiles and spam content. Spotify acknowledges that artificial intelligence tools are increasingly being used to mass upload low-quality music and plans to update its artist verification system. The service also promises to strengthen the role of curatorial work in forming recommendations.