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

"It's an impressive-sounding number that's a full $1 billion more than it paid last year. And, according to Spotify, that accounts for roughly 30 percent of the entire recording industry's revenue. And, according to Spotify, that accounts for roughly 30 percent of the entire recording industry's revenue. This figure, however, is purely a measure of royalties paid to the music industry and does not include merch or ticket sales, nor does it include audiobook royalties or podcasting deals."

"Spotify says that it doesn't have insight into how much of that money eventually finds its way into artists' hands. Agreements for individual artists can vary greatly. However, it's not uncommon for an act on a major label to see as little as 15 percent of their royalties. Though indie labels typically offer much more favorable deals, with 50 percent or more going to the artist."

Spotify paid more than $11 billion in royalties to the music industry in 2025, about $1 billion more than in 2024, representing roughly 30 percent of recording industry revenue. That $11 billion figure counts payments to rightsholders — labels, distributors, publishers, and others — and excludes merchandise, ticket sales, audiobook royalties, and podcasting deals. Spotify lacks visibility into how much of those payments reach individual artists. Major-label agreements can leave artists with as little as 15 percent of royalties, while independent-label deals often give artists 50 percent or more. Roughly half of Spotify's paid royalties went to independent artists and labels.

Read at The Verge