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Look, he's right, but he's also full of shit.
Music Production used to require expensive equipment and a dedicated studio. Now anyone with a few hundred dollars can make quality musical recordings in their living room. The monetary cost of creating musical content is extremely low compared to all previous eras of the music industry.
The issue here is that he is making an argument for raising costs while cutting artist revenue by making music appear to have little to no value. This is an extremely poor decision, since most people who enjoy music don't equate the value of the music they are listening to with the monetary cost it took to make it. It's also a crazy argument to devalue your product while raising prices.
Given that Spotify lines its pockets by shoving music from the highest bidder down their customer's throats (As everyone unwittingly listening to "Espresso" has surely learned over the past month), they clearly don't care about the small players getting exposure.
If you care about small artists, quit Spotify and start using Soundcloud and Bandcamp. Actually discover small artists instead of relying on the largest corporate music algorithm on the planet to spoon-feed you.