[dgurney]

I agree that the problem is primarily with the record labels. If they didn't exist, Spotify would be able to pay out to musicians on a level playing field. That said, given how closely intertwined Spotify and the labels are, musicians can't depend on either party to look out for their interests.

[ewzimm]

Yes the record labels need to go. They have been preying on musicians for a long time and will continue to do so. I'm sure that Sootify could pay more without them, but that wouldn't allow their model to completely support musicians. If every music listener paid a total of $9.99 per month or agreed to listen to ads, when you take out administrative, equipment, and bandwidth costs, there's just not enough money to split up. It makes a good promotional tool but needs to link to other ways to support musicians. They need to make it easy to buy concert tickets, mercy, Flattr, or other forms of support without being intrusive.