hmmm, sleep is good...
I think my vague point was that the free radio offered by Spotify is (usually) better than playing from my (or another's) music collection. The free Spotify radio eliminates the need to buy any music, because it's better than the music one would select and buy on their own.
Unlike radio, which was a way to advertise music to buy, I regularly see Spotify (and even Pandora with it's limited selection) as a substitute for ever needing to buy music, far more often than radio acted that way.
This is leaving aside the fact that Spotify allows for custom playlists, and not just radio from a desktop (for free).
I think really, what the labels should eliminate, if they're that concerned, is the free playlist organization on desktops though, most people I know are still unlikely to stream too much music on mobile due to bandwidth limits (the caching feature helps with this though).
Spotify, even the free version, eliminates the need for a music collection, as it's better than radio, and knows about artists I don't know about, and when picking a specific song I like to base a station on, it does an amazing job of throwing together a playlist.
Having said all that, I subscribe, first to Spotify, to use it in my car, and then to Google Play, because I can side load what it is missing (mostly local bands from my youth).