Spotify says it made ‘big numbers’ last year — but it needs to invest in these 3 areas if it wants to please its loyal subscribers | Tech Radar

Overview

Spotify says it made ‘big numbers’ last year — but it needs to invest in these 3 areas if it wants to please its loyal subscribers

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Of all the best music streaming services, Spotify is the only one that offers insight into its payouts through its annual Loud and Clear report, and in 2025 it paid out a record $11 billion back to the industry.

That’s around 70% of Spotify’s annual revenue, leaving the rest to go back towards improving the Spotify experience. There’s no denying that Spotify is always looking for ways to improve music discovery and welcome new personalization tools, but for me there are other areas that need prioritizing.

At the end of the day, Spotify is generating more annual revenue than it has in previous years, leaving the company with more leftover funds to invest – not only in the business itself – but also in external areas, where it has an obligation to offer support. After all, it’s the leading music streaming platform out there, so it should be setting an example.

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This is one of my biggest dislikes with the platform, and it’s a shared feeling among a lot of other subscribers too. Unlike services such as Apple Music, which focuses on simplicity, Spotify’s interface is all over the place. This is especially true of its Library tab, which seems to get messier each time I make a new playlist, save a new album, or follow an artist.

Though you can filter your Library by playlist, album, and artist, it’s quite fiddly and not the prettiest to look at, whereas Apple Music’s Library feels a lot cleaner. And although Spotify is the winner when it comes to features – for instance, there are six different ways to make a playlist – many of these will go unused by the average user. Moving forward, Spotify should think twice about investing in a new product feature if it doesn’t add value to the overall user experience – keeping things simple goes a long way.

Roll out labels for music that's completely AI-generated

Deezer is one example of a music streaming platform that has started flagging songs that are completely AI-generated (Image credit: Future)

The criticisms towards Spotify’s tolerance for fully AI-generated music will never die – that is unless it starts being more transparent with users. AI tags are the next step.

Its rivals are already starting to tackle this, for instance, Deezer has developed its own AI-detection tool and Apple is testing ‘Transparency Tags’. The debate around ‘what constitutes AI-generated music’ is still a hot topic with Spotify. It seems that the platform is unsure whether to flag songs where only a tiny component is AI-generated. But while many users can appreciate that, it's the slew of songs that are completely made using AI that gets under their skin, more than anything.

In Spotify’s Loud and Clear report, the platform shared that it drove $1.5 billion in concert ticket revenue, thanks to its integration of live event listings that take you straight to the ticket sales sites. For one, it’s a helpful way to spread the word about artists touring your area and get more music fans to attend gigs in grassroots venues. But Spotify has more than enough profits to invest directly in these spaces.

That’s not to say Spotify hasn’t contributed. Back in 2024, Spotify partnered with a UK-based organization Youth Music to set up a fund to support 15 grassroots venues facing closure. The partnership was an extension of Spotify’s Creator Equity Fund Program, and has extended its dedication to helping grassroots into 2026.

Though Spotify has these initiatives in place, the platform has faced criticisms from organizations such as Music Venue Trust (MVT) for not directly investing in these venues. In 2022 Spotify came under fire for its staggering $235 million deal with FC Barcelona, with MVT arguing that such funds could've been used to prevent the closure of hundreds of music venues. Spotify’s intentions with Youth Music are seemingly in the right place, but it definitely needs to rethink its investment approaches.

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Rowan is an Editorial Associate and Apprentice Writer for Tech Radar. A recent addition to the news team, he is involved in generating stories for topics that spread across Tech Radar's categories. His interests in audio tech and knowledge in entertainment culture help bring the latest updates in tech news to our readers.

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Key Takeaways

• Spotify says it made ‘big numbers’ last year — but it needs to invest in these 3 areas if it wants to please its loyal subscribers

• When you purchase through links on our site, we may earn an affiliate commission

• Of all the best music streaming services, Spotify is the only one that offers insight into its payouts through its annual Loud and Clear report, and in 2025 it paid out a record $11 billion back to the industry

• That’s around 70% of Spotify’s annual revenue, leaving the rest to go back towards improving the Spotify experience

• At the end of the day, Spotify is generating more annual revenue than it has in previous years, leaving the company with more leftover funds to invest – not only in the business itself – but also in external areas, where it has an obligation to offer support