I really don’t think it is/will.
Labels, especially the majors, are far more selective than they used to be. They’re not interested in the 99.99% of grunt music makers pushing out music.
They’re not stumbling over each other, fighting to discover the next major recording artist.
Whatever A&R is doing on Spotify, they’ll already be doing on SC and YouTube.
For them, it’ll just be another platform where they might identify prospective talent to sign up - something they’re certainly doing already as the barrier to entry for Spotify, Apple Music et al is already so low.
I think very little will actually change for labels.
The main loser here will almost certainly be SC - if Spotify can convince music makers that Spotify is the best platform for exposure and building an audience.
If anything, it’ll give them sharper tools to identify real prospects. It’s easier to separate the wheat from the chaff on Spotify because things like empty bios, no artist photos and no schedules gigs- all things visible in Spotify artist profiles - are a fairly accurate sign that the artist isn’t yet at a stage where a label A&R would likely be interested.