The large record labels have an entrenched position and they use there cash to stop the business being changed. It is happening slowly though. The performing rights groups have an interest in gathering royalties and not promoting music.
Some record labels really do know their niche and are managing to stay afloat (just) through diversification and begging people to support their artists (and thus them). They are normally very small (<10 people) companies.
Spotify is a great product but it's moving too slow for me. They need to invest in revenue streams for artists ASAP (as they have hinted they will so) but I feel they are hampered by their investment partners (large labels) who don't want to see revenue streams for artists that they can't plunder. Without the labels you're not going to get the Lady Gagas that most people want to listen to though so I understand why they went that way.