> it would significantly decrease the amount people listened, and presumably some people would stop subscribing.
Not sure about that.
The main value proposition of Spotify is that is a audio marketplace that consolidates legacy music catalog via big labels (EMI, Roadrunner, Universal, etc) plus the Podcast platform sindication and in a certain stance discoverability.
Everything keeping the friction in a minimum level.
Of course Ed Sheeran is a big name, but I think it’s debatable that, let’s say the top 1% of his fan base in the Spotify user base would trade the huge amount of friction due to his catalog removal.