Personally as an artist I'd rather give it to people directly for free but I'll meet the audience where they are. The "compensation" does not factor into it at all.

Interestingly, I'm seeing more and more small bands stepping off of Spotify, mainly because of AI clones and botted stream scams. Apparently they've decided losing that reach is acceptable. (anecdotal ofc. but even on local scale it's an interesting choice)