Because their platform becomes more desirable for creators. They’ve had issues with this in the past, Taylor Swift pulled all her music from spotify at one point due to the lower than average royalties. That’s a situation they’d like to avoid in the future because it’ll cause people to drop their subscription.
I get that, but why would Spotify care about that?
Because big labels have power. As Spotify you want to keep them happy more than the little guys. Otherwise they can lobby against you.
Because their platform becomes more desirable for creators. They’ve had issues with this in the past, Taylor Swift pulled all her music from spotify at one point due to the lower than average royalties. That’s a situation they’d like to avoid in the future because it’ll cause people to drop their subscription.