That’s sad to hear, and I hope it gets fixed, but
But
I didn't sign up for Spotify in order to "do something for teh starving artists" I, and the people I know who signed up for it, did so because
1) it's legal
2) it's cheap
3) It gives instant access to a wealth of music beyond what I could ever listen to in my whole life. It’s not every song ever (for instance there’s no Frank Zappa, no Coil, and the cusswords in Cake’s songs are blipped out) but it's close.
The artists were starving when the major labels were ripping them off, the artists are starving now their songs get copied and torented. It’s sad that Spotify doesn’t solve that problem, and that it doesn’t cure cancer either, but hey, at least Spotify didn’t make things worse.
Spotify’s competition is yes, illegal downloads. Illegal downloads have the advantage in price - they’re free, but they lose out to Spotify in not being legal and being less searchable.
The "instant music" really is a distinguishing feature. e.g. Gary Moore dies -> Play some of his music on Spotify. Friend says he’s been digging a band called "Aesthetic perfection" -> Listen to them all afternoon on Spotify. As ever, casual listening, if the artist gets paid or not is a gateway to finding new music that you really like, leading to being a fan and buying CDs/MP3s, gig tickets and merchandise.
That is exactly how Spotify is presented here in Sweden. While Spotify is losing money, the politicians brag and tell us how they suddenly found the "cure" for illegal filesharing.
We have to be realistic and not place all our bets on one horse. There is no single solution to media on internet and Spotify is no different. The internets = multitude. And, therein lies the beauty.
Well, that sounds like a strange simile to me. When listening to FM radio you do not chose what tracks you listen to. Spotify isn't Pandora. With Spotify, you can chose whatever track you like (as long they have it and there's no commercial queued). Lady Gaga got $167 for 1 million plays. Imagine what the small artists receives.
Spotify is controlled by the four major record companies: Universal, EMI, Sony and Warner. Even if they just own 18% of the shares, Spotify's entire existence rests on the trust that these record companies continue to license "their" music. The four record companies are using the power of Spotify to further strengthen its domination over other record companies and penalize artists outside their own team.
To me, listening to Spotify and actually believing you are doing something better for the artist than those who pirate is no less than delusion.