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Is music discovery still a problem? What's wrong with the current available solutions(if anything)?
If my tastes were less centralized and more mainstream, though, I'd be in trouble. The shareversizing economy has polluted most music discovery avenues into a wasteland of cash-grab garbage.
I guess the ideal solution to music discovery for me is excellent curation to tastes, with a tight filter on letting crap (or just too much content) in.
They play quite a wide variety of music, however at times it's a little too head-banging for my taste.
I discover new music with spotify playlists and this works really well for me now. But I've never tried an music recommendation or discovery app... so it could probably be better for me.
Reddit also helps with subreddits like /r/music/, /r/listentothis and other subreddits (there is an extensive list of links in the sidebars of said subreddits).
Youtube is a horrible discovery platform, the audio quality is lousy, and bandwidth is wasted on video. But the sheer volume of content + remixes + covers make it worthwhile. I can't think of a single song in any language of any genre and from any point in time that's not on the site.
8Tracks.com does a good job with discovering hand-curated playlists using youtube as its source.
I have a very global taste in music, and change favorite genres every few months (after exhausting most everything I can get my hands on). Spotify does a decent job in some categories, but the lack of content (especially international and instrumental) kill it for me. Pandora's recommendation engine always eventually recommends the pop hits. Even piano my piano instrumental playlists end up with Katy Perry.