Streaming service now accounts for about 30% of global recorded music revenue
Trade
Daniel Ek, Spotify
The entertainment industry is going to be completely transformed in the coming years and Spotify wants to be at the forefront of those innovations. That’s according to CEO Daniel Ek at the publication of its annual figures.
The Swede began his message to the market with: “What we put down is a technology platform for audio. The next wave of technological shifts includes: AI, new interfaces, wearables, new ways to interact with content. That will completely change the way people discover and experience audio and media.”
Ek is keeping his long-term strategy under wraps, but at least he is preparing investors for a heady future where success is not guaranteed. But he can take a punch, as Spotify had $9 billion in cash on hand at the end of 2025 and positive cash flow of $834 million.
Sales in the fourth quarter came in at $4.5 billion, up 7%.
The number of users rose 11% to 751 million. Just over a third of these are subscribers, people who pay a monthly subscription fee. The other 476 million listen for free and, in return, listen to advertising messages between songs.
The other 476 million listen for free and in return listen to advertising messages between songs.
Advertising revenue fell 4% due to the falling dollar exchange rate. Without the currency effect, there would have been a four per cent increase. That is still below the average of how the online advertising industry as a whole moves. But for that, the Swedish company has an explanation: ‘more impressions, but softness in rates’.
Spotify paid out more than $11 billion to the music industry in 2025, independent artists and labels again accounting for around 50% of all royalties. Spotify now accounts for about 30% of global recorded music revenue. Payouts grew by more than 10% in 2025.
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