I like that spotify pays royalties from free accounts, I dislike that I am effectively subsidizing this as a premium user. However, at the moment I am more comfortable with this than apples '3 months no royalties' system.
Another interesting point is that for a music subscription services, there is very little keeping users tied to one provider - all I need is the ability to export my playlists. I wonder if spotify's revenue will collapse for 3 months, but if they can be better than apple, they can get it all back 3 months later.
I presume Apple are trying to establish differentiation through the 'radio' service, but since the baseline market requirement is the ability to listen to practically anything all-you-can-eat, it'll be hard for them to achieve it there.
I am also not sure about Apple's model for the distribution of subscription fees. But e.g. in Spotify's model, it is largely large acts benefitting from indies, rather than the other way around.
http://lit.vulf.de/spotify-so-little/