Spotify reports $19.81 billion in 2025 revenue as users shift toward physical media
Users cite low artist pay and AI content as reasons for leaving platform.
Spotify recorded revenue of $19.81 billion in 2025. Despite these earnings, a segment of the user base is departing the platform for competing services or physical media formats.
Artists report receiving between $0.003 and $0.004 per stream on the platform. Taylor Swift previously removed her catalog from the service in 2014 over compensation concerns. While Spotify updated its royalty system in 2024, users continue to cite low artist pay as a reason for leaving the service.
The platform has seen an increase in content generated by artificial intelligence. Some AI-labeled artists have secured multi-million dollar contracts. Spotify has introduced badges to distinguish human creators from AI material following user complaints on social media platforms.
Physical media sales increased in 2025, with CDs outselling digital albums by a three-to-one ratio. Gen Z consumers are among those returning to physical formats such as vinyl and CDs. Users cited the desire for ownership and the removal of algorithmic influence as factors in the move to offline collections.
Subscribers have reported technical issues with the Spotify application, including glitches and lower audio quality compared to other services. The interface has moved toward a design featuring scrolling and auto-playing videos. The company now allows users to disable video content within the app.
