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The biggest drawbacks of Spotify and Netflix is the limitation of content, which comes from the fact that not all labels or movie studios are supportive of this. This is not an inherent problem of the platform itself of course. If this problem was non-existent, I am pretty sure that both services would be used by almost everyone.

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If this problem was non-existent, Spotify and Netflix would close down as free, community-based (i.e. open-source) solutions would would appear. Because the "limitation of content" is what copyright is all about, with artificially enabled "content owners" preventing everyone else to access the content.

Netflix and Spotify are just convenient channels for the content monopolists to charge for the access to "their" content.

I'd like to complement that copyright is meant to increase the total amount of access to culture, knowledge, etc. Not to deter it. Furthermore i'd like to add that in the case of atleast European competition law it is not allowed to use a dominant market position in market A in order to gain a dominant market position in market B. What we see today however, is that certain dominant market actors destroy the types of businesses you predict by means of endless torrents of lawsuits ( Grooveshark for example.) while at the same time buying competing stocks such as for example Spotify. Due to the international nature of these affairs and the insane spaghetti of legal persons created and being involved; it's unfortunately near impossible to commit further investigations into these matters.

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