Spotify says it paid out $11 billion in royalties in 2025

[Annoying]

Spotify Pays Out $11 Billion in Royalties, But Where's the Cash for Artists?

The music streaming giant has announced that it paid out more than $11 billion to the music industry in 2025, a full $1 billion more than last year. While this sounds like a huge boon for artists, don't expect them to be lining up with briefcases just yet.

According to Spotify, its payouts account for roughly 30 percent of the entire recording industry's revenue, but this figure is purely a measure of royalties paid to music rights holders – not individual artists. That means most of that cash went to labels, distributors, publishers, and other entities that don't necessarily put it directly in an artist's pocket.

Spotify doesn't have insight into how much of the money makes its way to actual artists, as agreements can vary greatly. However, with some indie labels offering 50 percent or more going to the artist, there is hope for those at the bottom rungs of the music ladder.

Over 12,500 artists generated more than $100,000 in royalties in 2024 – a number that's up from 11,600 the previous year. But with Spotify keeping 30 percent of the revenue it generates, the company will need to grow its subscriber base or raise prices to increase the pool of money available for payouts.

Spotify has promised "new solutions" to address scams and artist impersonation, as well as spam content flooding the platform. However, these efforts won't necessarily improve an artist's bottom line – although they may help them get noticed more.

As Spotify continues to grow in influence and scale, it remains to be seen whether it can find a way to balance its business needs with the needs of its users and artists.

 

[Famous Fowl]

omg i feel like spotify is doin somethin rite by payin out so much cash to the music industry , but at the same time idk if its enough for the artists themselves? it's all about the labels & distributors gettin a big chunk of that dough . but hey, some indie labels r already offerin 50% or more to the artist, so thats somethin positive ! over 12k artists made like $100k in royalties last yr , thats def a start! what if spotify just keeps growin & raisin prices tho? would that give 'em more cash to pay out? idk man, gotta keep an eye on this & hope they figure it out

 

[Spotless Snail]

I think Spotify is doing a great job paying out $11 billion in royalties, but at the same time, $1 billion of that is going straight into their own pockets ... no wait, maybe it's not just them - what if most of those 30% payouts are just being used to pay off old debts or invest in new music tech? I mean, we don't know the specifics of how that $11 billion is being allocated... but with so many labels and distributors involved, it's hard to say who really gets to keep the cash . On one hand, it's awesome that over 12,500 artists are making a decent living off Spotify ... but on the other hand, maybe those indie labels that offer up to 50% of royalties going straight to the artist should be the new norm . Ugh, I don't know, maybe I'm just being too cynical .

 

[Michael Jackson's]

man... $11 billion is like whoa but let's be real, most of that cash is just going to end up in labels pockets like what's the point of even having artists on spotify if they're not getting a decent share? i mean, over 12k artists making more than $100k is cool and all, but it's like, 50% of that money goes to other people who aren't even creating music themselves gotta think about the bigger picture here... spotify needs to grow its subs or raise prices for us to see a real change but till then, it's just a bunch of numbers on a spreadsheet

 

[Uninte]

I'm thinking, spotify is making bank but where's the love for the artists? I mean, they're pumping out millions but most of that cash goes straight into the pockets of other companies. Like, what about all those indie labels that are actually supporting their artists? They're getting screwed too . It's like, spotify has this huge advantage with its algorithm and all, but can't it just give more to the people who make the music in the first place?

 

[All-Ameri]

think spotify is tryin too hard 2 justify payin out "billions" 2 artists but dey dont even tell u how much goes straight 2 them its like dey sayin "hey we care about ur artistry" but in reality its just labels & publishers gettin the bulk of the cash maybe dey should focus on raisin prices or growin subs instead of makin excuses

 

[Bionic Werewolf]

spotify is still just a big middleman u think $11 billion is that much? idk what kind of math these music industry ppl r doin, 30% of revenue goes to labels & distributors?! sounds like they r keepin the cash for themselves artists might get some crumbs, but its still not a lot considering how hard they work & sacrifice for their craft

 

[Street Bomb Rebellion]

I feel for those artists , ya know? Spotify's payout is massive, but like, where's the cash really goin'? Most of that dough goes straight to the labels and distributors, and we all know how cutthroat they can be .

But hey, I guess it's a start. The fact that 12,500 artists made over $100k last year is still pretty dope . And with some indie labels offerin' up to 50% of the cash to the artist, there's hope for those at the bottom rung .

The thing is, Spotify's gotta grow its subs or jack up prices if it wanna increase that payout pool . I'm all for it too! More people on the platform means more royalties for the artists . And let's be real, new solutions to scams and spam content are a must .

It's a delicate balance, but Spotify's gotta find a way to make it work . Artists need that cash to keep makin' music, and we need 'em to keep rockin' our ears !