Spotify announced that it paid in excess of $11 billion to the music industry in 2025, a sum the company says is the largest annual payout from a retailer in music history. The Swedish streaming platform reported the total on Wednesday in a company blog post.
According to Spotify, the amount distributed to rights holders grew by more than 10% compared with 2024. The company specified that independent artists and labels accounted for half of all royalties paid during the year.
In its post, Spotify highlighted its payout ratio to the music industry, stating: "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 company said the remainder of revenue is reinvested into the platform to expand other content formats, identifying podcasts, videos and audiobooks as areas of investment.
Spotify said it is focused on keeping current artists on the service and drawing new creators to its platform as it contends with large competitors in the streaming market, including YouTube and Apple. The company also recently raised prices for its premium subscription plans in several markets as part of efforts to boost profits and capitalize on its user base.
The company reported 713 million monthly active users at the end of the third quarter. For comparison, Spotify noted that YouTube reported paying more than $8 billion to the music industry for the 12-month span from July 2024 to June 2025.
Context and implications
Spotify's disclosure underscores a continuing rise in the cash flow directed to rights holders as the platform's top-line increases. The proportions Spotify described - returning roughly two-thirds of music revenue to the industry and directing half of royalties to independents - frame how its revenue expansion translates into higher payments to creators and labels.
The company attributes the growth in payouts directly to revenue growth and points to strategic moves such as subscription price increases and investment in non-music content as part of its broader business strategy.