Spotify paid out more than $11 billion in royalties to the music industry in 2025 — the largest single-year payout from any retailer in history. This figure, up over $1 billion (and more than 10%) from 2024, brings Spotify's all-time contributions to nearly $70 billion.
The company continues to face criticism for underpaying artists, who typically earn an average of around $0.003 to $0.005 per stream (often cited as roughly $0.004), depending on factors like listener location, subscription type (premium vs. ad-supported), and overall platform stream share.
Spotify counters that the model supports broad success: Half of the 2025 royalties went to independent artists and labels. The platform now drives about 30% of total recorded music industry revenue. Notably, more artists earn over $100,000 annually from Spotify alone today than the number of artists stocked on record store shelves during the peak CD era.
Amid ongoing debates — including concerns about AI-generated content flooding the platform — Spotify announced it will introduce artist identity verification features later this year to help address such issues. The streaming giant insists the numbers reflect a thriving era for more creators than ever before.