You’re not on your own. This has always been my understanding and it has been through the courts. There’s a difference between the internet and radio - one is a ‘pull’ mechanism, the other is ‘push’. Broadcast radio pushes your music for you, people will hear it without requesting it. If they like it they will move to ‘pulling’ it specifically over the internet at their choosing.
This is especially important for new artists, they want to be heard and this is free advertising. Established artists are just being selfish here.
Not knowing this space, your comments sound reasonable.