Earlier quoted context omitted.
Think of the middlemen and distributors, they need to get paid, otherwise who will be making the music?
I like how they've even managed to shove the middleman bullshit into digital distribution, where there's practically no way to even justify it. You can't just upload music to Spotify or Apple Music or whatever as an independent artist. You need to pay rent to a distributor who is allowed to interact with the streaming service. (Some of them offer the convenient feature of administering royalties for cover songs, but…
My view on it (take it for what you will) is those companies exist mainly as a way for the streaming platforms to outsource and scale their quality control/checks.
The expectation from platforms like Spotify was basically that anything we sent over can go up without further review and that it added value to the platform, didn’t violate copyright law, was appropriately encoded, etc. If we let anything they rejected or later found issues with through, our status as a distributor was at risk.
I expect if Spotify had to staff and scale to deal with the garbage our users were trying, they would end up charging enough extra that you’d pay the same anyway. Basing that mostly on the fact that we weren’t really making much money.