I think you can take both interpretations. Someone might think "if Spotify is paying artists virtually nothing, I might as well cut out the middle man and just pirate music".
Spotify is worse than that; even the labels are getting virtually nothing. But you have a good point; when you buy something at Wal-Mart, the company that makes the product doesn't make any profit either.
When I buy clothes, how much of it goes to actual factory worker / designer?