Finance
Spotify says it made record payout of more than $11 billion to music industry in 2025
Published by Global Banking and Finance Review
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Home > Finance > Spotify says it made record payout of more than $11 billion to music industry in 2025
Quick Summary
Spotify paid over $11 billion to the music industry in 2025, marking the largest annual payout from a retailer. The company aims to grow by increasing subscription prices and expanding content formats.
Spotify Achieves Record $11 Billion Payout to Music Industry in 2025
Spotify's Record Payout to the Music Industry
Jan 28 (Reuters) - Spotify said on Wednesday it had paid out more than $11 billion to the music industry last year, adding that it was the largest annual payment to music from a retailer in history.
Growth in Artist Royalties
The Swedish streaming platform said in a blog post that its payouts in 2025 grew by more than 10% from a year earlier, with independent artists and labels accounting for half of all royalties.
Competition in Music Streaming
The company has been prioritizing retaining and bringing in new artists to the platform as it faces stiff competition from other major players such as YouTube and Apple in the music-streaming market.
Impact of Subscription Price Increases
YouTube said in October it had paid out more than $8 billion to the music industry in the 12 months between July 2024 and June 2025.
"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," the blog said.
The company reinvests the money it keeps into the platform, it said, as it looks to grow various content formats such as podcasts, videos and audiobooks.
Spotify recently raised the prices for its premium subscription plans in several markets to boost profits and leverage its large user base to drive growth.
It had 713 million monthly active users at the end of the third quarter.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shreya Biswas)
Key Takeaways
- •Spotify paid over $11 billion to the music industry in 2025.
- •Independent artists and labels received half of all royalties.
- •Spotify faces competition from YouTube and Apple.
- •Subscription price increases aim to boost profits.
- •Spotify had 713 million monthly active users by Q3 2025.
Frequently Asked Questions about Spotify says it made record payout of more than $11 billion to music industry in 2025
1What is a music streaming service?
A music streaming service is a platform that allows users to listen to music online without downloading it. Services like Spotify provide access to vast libraries of songs for a subscription fee or free with ads.
2What are artist royalties?
Artist royalties are payments made to musicians and songwriters based on the sales and streams of their music. These payments are typically a percentage of the revenue generated by the music.
3What is a subscription price increase?
A subscription price increase refers to the rise in the cost of a subscription service, which can occur to adjust for inflation, improve service quality, or increase company profits.
4What is a premium subscription plan?
A premium subscription plan is a paid service that offers additional features or benefits compared to a free version, such as ad-free listening, higher audio quality, and offline access to music.
