Spotify paid out a record $11 billion into the music industry last year

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Spotify distributed over $11 billion to artists and rights holders last year, reaching a total of almost $70 billion in payouts since the service began.

As a huge music fan, I was really interested to see Spotify announced they made the biggest single-year payment to artists ever! And it’s not just a small bump – they’re increasing those payouts by over 10% in 2025, which really solidifies their position as a major financial force in the music industry. It’s great to see them investing more back into the creators we all love.

While overall industry growth figures can seem distant, we’re actually seeing real, positive changes happen, according to Charlie Hellman, our new head of music. Despite a lot of misleading information about streaming, the truth is that more artists are finding success now than ever before, and the future looks bright.

Early on, there were concerns about how much money artists made from music streaming services. Spotify reports that independent artists and labels receive half of all royalty payments. They also state that more artists are now earning over $100,000 annually through Spotify than did during the peak of CD sales.

Hollywood Inc.

Following recent successes – including winning a podcast award at the Golden Globes and launching a video podcast on Netflix – the music streaming service is increasing its subscription price for U.S. customers.

Founded in 2006 and based in L.A.’s Arts District, this company has grown to become the leading audio streaming service worldwide. It offers a vast library of over 100 million songs, podcasts, and audiobooks, available in more than 180 countries.

At the beginning of the year, Spotify’s founder, Daniel Ek, stepped down as CEO and became executive chairman. Gustav Söderström and Alex Norström were appointed as co-CEOs to lead the company.

Spotify recently increased the price of its premium subscriptions in the US to $12.99 a month. The company explained that this price hike will support its continued growth and investment in the platform. Spotify reports that it accounts for about 30% of all revenue from recorded music, and it distributes two-thirds of that revenue to artists and the music industry. The remaining third is reinvested into Spotify to improve and maintain its listening experience.

The streaming service has been heavily investing in podcasts lately. They’ve opened a new recording studio in Hollywood, launched several shows with Netflix, and improved how creators can earn money through their platform.

Hollywood Inc.

Spotify is growing beyond its Arts District offices and opening a new podcast studio in Hollywood. This space will primarily be used for video podcasts and will serve as the main headquarters for The Ringer, Spotify’s sports and pop culture media company.

Spotify is responding to advances in artificial intelligence by focusing on strengthening the relationship between artists and their fans. They plan to do this by highlighting more artist-created videos, continuing to promote live concerts through the platform, and giving their music curators a bigger role. Spotify also intends to limit the presence of artists created using AI on its service.

According to Hellman, malicious individuals are using AI to overwhelm streaming platforms with poor-quality music, hoping to steal royalties from genuine artists. To combat this, they plan to improve how artists are verified, how song credits are assigned, and how artist identities are protected. This is essential to maintain trust for both listeners and those who own the rights to the music.

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2026-01-28 19:31