[mikeknoop]

As the article points out (and assuming it applies to Spotify):

7. Most favored nation. This is a deal term demanded by every major label that ensures the best terms provided to another label are available to it as well

... means that Spotify cannot offer small labels better deals else it would put them out of business because they would have to match the deal for every label.

[wmf]

That would only apply if Spotify is already paying indies the same as majors, but it sounds like they're paying much less.

[chrisclark1729]

For what it's worth, the majors are also making fractional pennies. The gap is not as large as the fractional penny amount would make you think.