The Empire Strikes Back: The Majors and Merlin Gained (a Bit) of Market Share on Spotify Last Year.

Why It Matters

The shift restores major labels’ negotiating leverage with Spotify and reshapes royalty flows across the streaming ecosystem.

Key Takeaways

• Majors‑plus‑Merlin hit 72% Spotify stream share 2025
• Independent share rose to 28%, still growing
• Top‑10 albums all from major label subsidiaries
• UMG’s PIAS acquisition likely contributed to rebound
• Merlin’s expanding roster may boost future major share

Pulse Analysis

The 2025 Spotify report marks a subtle but historic reversal for the industry’s three biggest record companies and their collective licensing body, Merlin. After a steady slide from 87% market share in 2017 to a low of 71% in 2024, the cohort nudged up to 72% of all music streams on the platform. This uptick, though modest, is the first year‑over‑year gain since Spotify went public, signaling that the majors are beginning to reclaim ground lost to a burgeoning independent sector.

Several dynamics underpin the resurgence. Major labels leveraged their indie distribution arms—The Orchard, AWAL, and others—to place high‑impact releases like Bad Bunny’s global‑top album and multiple K‑pop soundtracks among the platform’s most streamed titles. Merlin’s expanding roster across emerging markets added further volume, while strategic M&A activity, such as Universal Music Group’s full acquisition of PIAS, integrated a sizable indie catalog into the majors’ reporting stream. These moves collectively boosted the majors’ share of the “middle‑class” artist pool that had previously driven independent growth.

For the broader music economy, the renewed dominance of majors‑plus‑Merlin reshapes royalty negotiations and could influence Spotify’s future licensing terms. Independent distributors like DistroKid and Empire, which have been gaining traction, now face a slightly tighter share of streaming revenue, prompting them to seek alternative platforms or negotiate stronger deals. Observers will watch whether Merlin’s continued expansion or further major‑label acquisitions can sustain the upward trend, or if the independent sector will once again erode the majors’ foothold in the streaming market.