[shpiel]

I don't think anyone (with the possible exception of the Spotify marketing department) thinks that Spotify will be the savior of the music industry. Most popular artists know this. Popular artists like Radiohead, Taylor Swift, or Arcade Fire either distribute only a portion of their work on Spotify, or distribute it with a delay.

And Spotify is better than piracy for record labels. (i) Spotify provides useful data for labels (at least those that have an ownership stake in Spotify), (ii) the revenue, in aggregate, is not insignificant and certainly better than revenue from piracy (again this benefits the labels with ownership stakes), and (iii) gives them a measure of messaging control.

Essentially, Spotify is marketing channel for major labels.