This is the money quote. I'm one of them, a paying Spotify subscriber who downloaded Taylor's 1989 album off PB.
Also, I think artists confuse money extracted 'per pay' with money extracted 'per customer'. They should focus on the latter.
If my choices as a consumer are these two:
1. Buy 10 plastic disks with music etched into them (CDs) per year, for $120 or
2. Pay $120 to artists and listen to all music.
These two are equivalent earning streams for artists (ignoring the money that record labels siphon away), but I get more value out of the second option (2). And the difference is huge!
In fact, when I only had the first option (1) I rarely took it, i.e. I didn't buy many CDs (before piracy/internet). So, the artists didn't extract much earnings out of me.
Then comes Spotify (and friends), and suddenly there is an outcome where I'll part with $120 per year and artists earn money from me that they didn't before. They should embrace that, not focus on money per 'played song', rather on 'money earned per consumer/year'.