On top of that I don't think streaming music and videos is completely the same thing. I think for video new content is vastly more valuable than the back catalog, keeping a steady stream of fresh exclusives might be enough to justify a Netflix subscription.

Meanwhile I'd say that maybe 2/3rds of my playlists are tracks from the past decade or older. Having only access to a subset of the music being produced today is not really enough for me to justify paying 10 euros a month. When I hear some music that I like on the radio I fully expect to be able to find it on Spotify and most of the time I'm right. If suddenly I have to use 3 different streaming services to access all the music I like then it'll be back to pirating for me. How do you even compile a playlist in these conditions?

I really don't think that "pulling a Netflix" would make any sense for Spotify at all, and it would be a terrible thing for the users.

On the contrary, a ton of licensors have pulled out of Netflix. Its just that their content is good and at a large enough scale that it doesnt matter. Netflix was lucky to build its in-house production muscle before a lot of the licensors wised up and started building their own platforms.

Also, royalties pay so little it's in the artists' best interest to put their music everywhere in hopes of a streaming revenue.