Pandora started "the algorithmic playlists" but sadly their management team could not capitalize on it.
Spotify has some huge lawsuits underway for not clearing proper rights for music as well, I believe one is for 1.8 billion. They do have huge investment (ownership chunk) from at least one major label though I believe?
I don't get all the hoopla about Spotify's bad discovery stations. I notice this similar reality distortion field on reddit, feels like marketing.
And I will be keeping my hard drives full of media and cds.