The Streaming Divide: Why Spotify Trails Behind Amazon and Apple
For years, Spotify has dominated the music streaming industry, revolutionizing how we consume music and paving the way for subscription-based platforms. But in 2025, it seems the tide is turning. Amazon Music and Apple Music are stepping up their game, outpacing Spotify in one critical area: artist payouts.
And it’s not just a minor lead—they’re redefining the rules of the game.
The Numbers Don’t Lie
According to Duetti’s latest Music Economics Report, the disparity in per-stream payouts between these platforms is staggering:
- Amazon Music: $8.80 per 1,000 streams
- Apple Music: $6.20 per 1,000 streams
- Spotify: $3.00 per 1,000 streams
For artists, this is a game-changer. Amazon’s payouts are nearly three times higher than Spotify’s, and Apple Music isn’t far behind. This difference in compensation is forcing musicians—and their fans—to rethink where their loyalties lie.
While Spotify has long claimed the crown as the largest streaming service by subscriber count, its payout model is starting to look outdated in a competitive, evolving market.
Why Are Amazon and Apple Winning?
The answer lies in their approach to artist compensation. Both Amazon Music and Apple Music have prioritized sustainable payouts and higher royalties, particularly for independent and mid-tier artists. Here’s why they’re leading the charge:
- Premium Listener Experience: Amazon Music and Apple Music focus on providing value-added features, such as spatial audio and high-definition sound quality. Apple even offers increased payouts for spatial audio tracks, incentivizing artists to embrace new formats.
- No Strings Attached: Unlike Spotify, which requires tracks to hit a threshold of 1,000 streams annually before paying out royalties, Amazon and Apple start paying from the first stream. For smaller artists, this means immediate income without the barriers that Spotify imposes.
- Stable Pricing, Better Returns: While Spotify’s stateside subscription plans are often more expensive than its competitors, its payouts don’t reflect this. Amazon and Apple have strategically aligned their pricing with competitive royalty payouts, creating a more equitable ecosystem for artists and listeners alike.
- A Commitment to Artists: Amazon Music and Apple Music have built reputations as artist-friendly platforms. Their focus on sustainable compensation has earned them goodwill in the music community, something Spotify’s Discovery Mode—offering visibility in exchange for lower royalties—has failed to achieve.
What’s Going Wrong for Spotify?
Spotify’s issues stem from policies and practices that increasingly alienate its most important stakeholders: the artists. Here’s what’s dragging the platform down:
- Discovery Mode’s Controversy: In 2024, Spotify’s Discovery Mode accounted for 26% of on-platform streams—double its 2023 share. While this feature boosts track visibility, it does so at the cost of reduced royalties, further slashing artist earnings.
- Threshold for Payments: The 1,000-stream minimum for royalty payouts creates an unnecessary hurdle, particularly for smaller acts and niche genres. It’s a rule Amazon and Apple don’t impose.
- Flat Payout Model: Spotify’s $3.00 per 1,000 streams pales in comparison to its competitors. This low payout, combined with its threshold policy, makes it less appealing for artists who want to earn a sustainable income.
Spotify’s response to criticism has often been defensive. The company argues that focusing on engagement rather than per-stream payouts benefits artists in the long run. However, for musicians trying to pay their bills, engagement doesn’t necessarily translate to financial stability.
The Changing Landscape of Streaming
Streaming has always been a game of numbers: subscribers, streams, and payouts. But the rules of this game are shifting. As artists and listeners become more informed about where their money goes, they’re making decisions that reflect their values.
For listeners, platforms like Amazon Music and Apple Music offer a compelling value proposition: premium sound quality, artist support, and competitive pricing. For artists, the choice is clear. Platforms that pay more per stream are inherently more sustainable, allowing musicians to invest in their careers and continue creating.
This shift is part of a broader trend in streaming. As competition intensifies, platforms can no longer rely solely on subscriber numbers to win. They must innovate, not just in user experience but also in how they support the artists who drive their content.
What This Means for the Industry
The implications of this shift are profound. If Amazon and Apple continue to prioritize fair payouts, they could reshape the streaming industry entirely. Here’s what we might see:
- More Artists Moving Away from Spotify: As the payout disparity becomes more widely known, artists may pull their music from Spotify in favor of platforms that offer better compensation.
- Pressure on Spotify to Change: Spotify could face mounting pressure to revise its payout policies, especially if its competitors continue to gain market share. This might include scrapping the 1,000-stream threshold or increasing its per-stream rate.
- A New Era of Listener Loyalty: Listeners are becoming more conscious of where their money goes. Platforms that support artists more transparently could win over subscribers who value ethical consumption.
Can Spotify Catch Up?
Despite these challenges, Spotify isn’t down for the count. The platform still boasts the largest subscriber base globally and offers unmatched music discovery features. However, its dominance is no longer guaranteed.
To stay competitive, Spotify needs to rethink its approach. That means higher payouts, fewer restrictions, and a renewed focus on supporting the artists who make its platform worth subscribing to. Without these changes, it risks falling further behind as Amazon and Apple continue to lead the way.
Amazon and Apple Music are proving that you can win the streaming game without undercutting the very artists who make it possible. By prioritizing fair payouts and premium listener experiences, they’re setting a new standard for the industry—and forcing Spotify to reconsider its strategy.
For artists and listeners alike, this is a pivotal moment. The platforms we choose to support will shape the future of music. As Amazon and Apple raise the bar, the question remains: will Spotify adapt, or will it be left behind?
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