Spotify Touts $11 Billion in Payouts, But Artists Still Struggle

Streaming giant's 'Loud and Clear' report highlights industry growth, but critics say royalties remain stagnant for many musicians.

Mar. 11, 2026 at 5:50pm

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Spotify has released its annual 'Loud and Clear' report, touting $11 billion in payouts to the music industry in 2025 - the largest single-year payout from any retailer. The company claims to have 'saved' the industry from piracy, but the report also shows artist royalties growing at a stagnant rate, with many lesser-known musicians still struggling to make a living.

Why it matters

Spotify's dominance in the streaming landscape has drawn criticism over the years regarding its artist royalty model. This report aims to provide transparency, but also highlights the ongoing challenges faced by grassroots artists and venues despite the platform's growth.

The details

Spotify's 2025 revenue totaled around $17.2 billion, with $11 billion paid out to the industry - 70% of its total revenue. The company claims this is the 'largest single year payout from any retailer in history.' The number of artists earning over $100,000 in yearly royalties increased to 13,800, up 1,400 from the previous year. However, a sustainable living wage remains elusive for many lesser-known musicians. Spotify also drove $1.5 billion in live music revenue, but grassroots venues continue to struggle due to the platform's pro-rata payment system that favors top artists.

  • Spotify released its 'Loud and Clear 2026' report in March 2026.
  • Spotify will celebrate its 20th birthday next month (April 2026).

The players

Spotify

A major music streaming platform that has faced criticism over its artist royalty model.

Carrie Marshall

A musician and audio contributor who has firsthand experience with the challenges of making money through Spotify.

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What they’re saying

“20 years ago, this industry was fighting for survival.”

— Spotify spokesperson

“I think it's absolutely true that Spotify helped save the music business from online piracy. And the music business is doing brilliantly in the streaming era; musicians, not so much.”

— Carrie Marshall, Band singer and audio contributor

The takeaway

While Spotify's report highlights the platform's growth and its impact on the music industry, the ongoing struggles of grassroots artists and venues underscore the need for a more equitable royalty model that better supports the diverse range of musicians in the streaming era.