I agree completely re U2 - they were paid a massive lump sum by itunes, all the while giving the appearance they were 'giving' their new album away. Completely undermining the value of music, and working musicians and artists.
My main problem with Spotify, You Tube, Google etc is this is the future of music. And lots of this music is 'free' to the end user - funded by Ad-click/Ad supported revenue.
Google made billions from ad-revenue from pirate sites. So all the while Google were saying piracy was nothing to do with them, they were making a fortune off it. It wasn't just Kim Dotcom and other pirates who were making money from pirate sites - the ISP's and browsers etc did very well out of piracy/P2P sites.
What I think is most shocking about all these changes, if how swiftly all these rights (and all this power) is being consolidated. Apple recently paid $3billion for Beats by Dre, and they really aren't that interested in the headphones side of things - it's the digital distribution network side of things they were after.
If iTunes does fail, Apple will be more than ready with Apple mkII ready to go.
Considering all the anti-monoploly legistalion in EU and USA, it's a wonder they are getting away with it. I think the govt, like the record companies, just don't really understand the new digital world (or are very slowly running behind). So they just marvel at Apple and Google and YouTube and FB with their tongues hanging out, wondering how much their upload on YouTube might make them.
Gone are the days of the internet being about freedom. Now the internet is owned by just a few companies, that are getting bigger, sit on each others boards etc. And we all sit back and love them and clap.
Great inforgraphic here of digital income for artists - projecting what an artist needs to do to earn the US minimum wage: www.informationisbeautiful.net/2010/how-much-do-music-artists-earn-online/
Is it ethical? Spotify will claim, "we don't make any money boo hoo" but they are building a massive dominant company/asset off the back of the massive revenue they generate. It's a bit like Amazon UK not making a profit - but developing and building massive assets/distribution centers while they cry about not making money.
It's certainly convenient, great for the end user, not so great for the artist, or songwriter or performer.