For me the value proposition is that there’s zero fragmentation. I know that by paying what I do for Spotify, I have access to pretty much everything. That’s worth a decent premium to me.
The problem with Netflix is the same as console exclusives in video games - fragmenting the ecosystem means I look at the service for the content it has vs the other services. But with Spotify it fills that niche entirely.
I mean compared to video streaming sites - Netflix and prime have vastly different libraries. If Spotify and Apple Music had different libraries to the same degree, id probably bounce between them both and be more price sensitive. The fact that Spotify (and apple and tidal) have the full catalog mean the network effect is likely to be my main decider.
The problem with Netflix is the same as console exclusives in video games - fragmenting the ecosystem means I look at the service for the content it has vs the other services. But with Spotify it fills that niche entirely.