Sure, the subscription model and free tier model were chosen by Spotify, but the payout model was and is a negotiation between DSPs and record labels and the big 3 record labels (universal, sony, warner) hold most of the leverage. Any changes to this model require sign off from those three and they aren't likely to want to change the model since it profits them so much. And I'm not really sure they suffer.. their argument re: why they still take so much from the artist portion of the revenue without actually physically manufacturing anything is because they attribute that cost to maintaining a database and such, which seems a bit disingenuous. At least when it comes to the big 3 I don't really care if they suffer, they've made screwing artists and consumers their business.

I guess you can imagine a world where the music industry saved itself somehow, but I don't see how that happens without the subscription based model. It's a fucked up industry and I'd love to have artists supported more but where is the money coming from? Fortunately, there are distributors like DistroKid.. DK charges a flat rate and passes on 100% of royalties earned to musicians.