(Reuters) - Spotify (SPOT) said on Wednesday it paid $10 billion in royalties in 2024, the largest payout to the music industry in a single year.

Spotify's stock climbed over 4% in pre-market trading on Wednesday.

Nearly 1,500 artists earned over $1 million in royalties from Spotify last year, the Swedish streaming giant said.

Spotify said its yearly payout to the music industry had risen 10 times from $1 billion in 2014.

Spotify was hit with a lawsuit in U.S. that accused the company of underpaying songwriting royalties for tens of millions of songs last year. A federal judge in New York ruled to dismiss that suit this year.

(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Mrigank Dhaniwala)