So Spotify (as with most startups) is currently not profitable. In fact, in an interview, Spotify's CEO stated that their focus is not on becoming profitable but user growth. The idea behind it (I'm guessing) is similar to Facebook in that they will become profitable just by the sheer number of users. I am unsure as to how successful they can be in doing this.

On the other end of the spectrum we have iTunes. Now, whatever your opinion might be on their business model or the entire concept of buying music a la carte, the fact of the matter is that it is profitable for Apple.

So while we say subscriptions is the future, the bottom line is there is no monetary incentive. So does Apple change? Or will Spotify break before that?

I'm betting that Apple changes and offers a streaming service in the near future, not to say it will replace the existing model rather it will coexist with it.

The only things stopping them are the streaming rates that labels are charging right now which are ridiculous hence Spotify and Pandora are struggling and not enough demand from users. I'd go out on a limb and say Spotify has more success because of its Facebook tie-in rather than the idea of streaming.

At the end of the day, Apple is all about selling the hardware/devices, so if a streaming music is a compelling service that will increase sales, I'm sure they'll do it. For the record, I think App Store runs at cost (no profit), and iCloud must run at cost too.