Technology

In this case, it's a good thing that Spotify is an European and not an US company. Less incentive for enshittification. At the same time, the main reason they fuck over musicians so much is not so much Spotify but because of record labels and ads themselves. The record labels are the ones with the financial power, holding the copyrights. It's not that Spotify doesn't pay labels, they do, then in turn the labels keep most of the money and fuck over the artists. At the same time, the record labels came last to the streaming game. Blinded on the madness that was the Napster and peak P2P era, a war they lost, they didn't want to even sell digital copies. Many awards and labels didn't considered digital sales, legitimate sales. An many rogue artists sold or gave their digital albums for free to protest this. So they were always behind the curve. When Apple forced the labels to sit at the table for iTunes, they had no bargain leverage and were forced to accept shit terms in exchange for the hope that streaming would stop piracy. As a result, the tech giants got to keep most of the revenue bag and that's been the status quo ever since.

On the other hand, adverts don't pay. We tend to forget this because the likes of Google and Facebook are so massive. But the only reason they make any money is because of how massive they're. Adverts are a shit form of payment. Too expensive and no one wants to advertise with you, too cheap and you can't cover even the platform maintenance, it's a delicate balance. The result is you need millions of eyes to make any significant amount of money from an advert. There's a reason cable and open air TV has devolved into 15 minutes of advertisement per every 20 minutes of entertainment.

Spotify pays a fraction of a cent for every play. It takes 150 plays of a song to make a dollar from advertisement, and most of that dollar is gonna stay with the record label. This is significantly worse for indie and small up and coming artists. They simply can't make a living out of Spotify unless they are already big and have a massive following. This hurts the whole industry as it becomes harder and harder to nurture new talent.

The up side is that, although they are getting shafted by Spotify and the labels, a subscription play is worth more than a free play. Up to ten times more than a free user play. So your subscription does help pay artists more. The down side is that less than 25% of Spotify users pay for a subscription.