I consider Spotify like Hulu - existing as a puppet to give "the industry" a centralized distribution service. I don't ever expect them to make a profit, unless they decide to pivot and sell what's left to another corp. Am I wrong?
I think you're kind of right. The thing about Spotify is that my initial reaction was "it's about damn time". It's not like it was technical innovative. Everything needed to make it had been around for at least a decade, they just had to get all the legal stuff figured out first.
It's not a puppet - they are officially part owned (3-4%) by the Universal Music Group. Sony Music Group and Warner Music Group have sold some and all of their shares in Spotify, respectively