Spotify paid out as much as 11 billion dollars to the music industry last year

The engine that drives the music

This record payout is not only an impressive number, butć and an indication of the immense influence of the platform. According to the company, Spotify’s payments now account for approximately 30 percent of the total revenue of the entire global record industry. In a post on the official blog, Charlie Hellman, global head of music, emphasized that payments grew at a rate of ten percent, while other sources of revenue in the industry grew much slower, around four percent. The total payout since the establishment of the company to date has reached almost 70 billion dollars.

Who does the money actually go to?

Although it handles billions, the eternal question that follows Spotify is how much of that amount actually ends up in the pockets of the musicians themselves. The company transparently communicates that it does not pay the money directly to the artists, but rather to “right holders” – publishing houses, distributors and others, who then pay the musicians according to the terms of their contracts. Because of this, the final amount that the artist receives can vary significantly.

Still, Spotify is actively fighting the narrative that only the biggest stars benefit from streaming. They state that independent artists and publishing houses are responsible for half of all royalties paid. Also, they claim that in 2025, more than 12,500 singers will have earned over $100,000 from Spotify alone, which, Hellman claims, is more than in the “golden age” of CD sales in the 1990s.

Proactive defense and plans for the future

In recent years, Spotify has changed its communication strategy, becoming much more open and quick to respond to criticism. When artists like Bonnie Tyler or Snoop Dogg publicly complained about their low earnings, the company promptly released data on millions of dollars paid to rights holders for their catalogs, shifting the blame to their contracts with publishers.

In addition to defending its model, the company also announced new priorities. One of the key ones is the fight against the so-called “AI rubbish” (Back up slop), that is, mass production of low-quality content generated by artificial intelligence. Tools to prevent fraud and impersonation have been announced, as well as a greater emphasis on “human editing” to help new artists break through and make a real connection with audiences.