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Spotify announced Wednesday that the company now accounts for about a third of the music industry’s recorded music revenue, solidifying its position as a global leader. music streaming service.
The company highlighted that it had made the largest annual payment to the music industry ever by a retailer, with revenues having doubled since 2017.
“Today, Spotify accounts for about 30 percent of recorded music revenue,” said Charlie Hellman, head of music. “Last year, our payments grew by more than 10%, while other industry revenue sources grew by closer to 4%, making Spotify the leading driver of industry revenue growth in 2025.”
He noted that Spotify paid more than $11 billion to the music industry, the largest annual payment ever made by a retailer, bringing the company’s total payouts to nearly $70 billion.
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The Spotify site on a smartphone installed in the Brooklyn neighborhood of New York, Friday, July 22, 2022. (Gabby Jones/Bloomberg via Getty Images / Getty Images)
This historic milestone for the platform has allowed more artists to earn six figures per year from Spotify alone. Independent artists and labels specifically accounted for half of all royalties.
In the announcement, Hellman also listed new focus areas and products to be planned, including efforts to increase visibility in a saturated market, combat the exploitation of artificial intelligence against artists, and drive ticket sales for live performances.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| PLACE | SPOTIFY TECHNOLOGIE SA | 511.31 | -0.29 |
-0.06% |
“Our number one priority is to help more new music and new artists cut through the noise and make real connections with fans,” Hellman said.
“With more than 100,000 new songs released every day, rivaling the entire history of recorded music, emerging artists face an unprecedented challenge: building the early fan base that every successful career needs,” he added.
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Spotify’s Charlie Hellman speaks on stage during Spotify Investor Day at Spring Studios on March 15, 2018 in New York City. (Ilya S. Savenok/Getty Images for Spotify / Getty Images)
To protect the identity of artists amid the increase in AI-generated content, Spotify said it plans to update its song verification and crediting systems.
“AI is being exploited by bad actors to flood streaming services with low-quality products in order to game the system and attempt to siphon royalties away from authentic artists,” Hellman said. “We will therefore introduce changes to the systems for verifying artists, song credits and protecting the identity of artists.”
A musician and sound engineer mixing a new album in a boutique recording studio. (iStock/iStock)
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Additionally, the music platform will launch SongDNA to allow fans to see who worked on a song; deploy new tools to help convert listeners into ticket buyers; and introduce human music editors to balance algorithmic playlist recommendations.
