YouTube’s Rising Payouts: A Boon for the Music Industry
In a significant development for the music industry, YouTube has announced a substantial increase in its annual payouts to music rightsholders, reaching $8 billion between July 2024 and June 2025. This marks a 33% growth compared to the $6 billion paid out in the corresponding period three years prior, as reported by Lyor Cohen, YouTube’s Global Head of Music, at the recent Billboard Latin Music Conference in Miami. This upward trend highlights YouTube’s expanding role in the digital music ecosystem, although it still aims to surpass Spotify as the leading royalty payer—a feat not yet realized, despite the promising trajectory.
The increase in payouts underscores music’s crucial role within YouTube’s overall creator economy. With CEO Neal Mohan’s revelation that $100 billion was distributed to creators, artists, and media companies over the past four years, it’s estimated that the music sector accounts for nearly 28% of these payouts. This allocation reflects YouTube’s strategic emphasis on supporting music creators through substantial financial distributions that facilitate further growth and innovation within the industry.
Adding to the platform’s robust engagement metrics, YouTube reports having over 125 million subscribers to its Music and Premium services and more than two billion logged-in users watching music videos monthly. These figures exemplify the vast audience reach and the platform’s effectiveness in connecting music to its global user base, enhancing visibility for both mainstream and independent artists.
However, in comparing its growth to Spotify’s, which increased its payouts from over $7 billion in 2021 to more than $10 billion in 2024—an impressive 42.9% rise—YouTube still has ground to cover. Combined, these two major platforms have contributed $18 billion annually to the music industry, a testament to the digital music sector’s resilience and evolution.
As conversations continue regarding the equitable distribution of these earnings among artists and songwriters, the overall enlargement of financial flows from YouTube and Spotify remains a positive indicator for the industry’s future. These developments position platforms like SONGLENS to further champion emerging talent, foster meaningful collaborations, and amplify voices that matter before they hit the mainstream. Embracing these dynamics will reinforce SONGLENS’ commitment to editorial integrity and innovative music discovery.
