Even with licensing costs at zero, the infra of Youtube, the closest thing to Spotify for video, is a very different beast. And I'd argue youtube doesn't go far enough.
So, while you are right that video streaming is much more costly than audio streaming, I think GP is overall more correct about the reasoning being production costs rather than anything to do with distribution.
Reduced hot-storage, increased playlist. Sort of media communism but the capitalists still hold the keys?
I think a better example is bandcamp - it’s actually sustainable for artists and just as convenient as pirating. Plus you get to actually own what you pay for as opposed to Spotify controlling what you can / cant listen to.
streaming services do provide some conveniences over manually managing one's own library of music. i feel like "far more" is a sales pitch argument more than something that describes reality (ignoring whether you pirate or legally acquire digital music). i recently cancelled my streaming music service subscription and returned to manually managing my music. i spend maybe one day a week shuffling music on and off of my phone according to what i want to listen to in the moment. i don't really miss being able to call up any song in the world at any point - i make a note to add it to my phone next time i sync and then move on. if i simply have to play something that's not currently on my phone, i can usually find it on bandcamp or youtube without having to pay for a stream or two.
i know it's not for everybody (and trust me, apple doesn't make it particularly easy to do compared to signing up for Apple Music), but it's really not much work to manage your own music and doing so comes with some benefits you forget about when you assume you can and should have instantaneous, frictionless access to most recorded music.
While the web UIs suck compared to local media players, they work well enough that I can cope.
But most services restrict 4K (and at least historically 1080p) web playback, even on Windows with a GPU that supports top-tier hardware DRM and an HDCP display.
My desktop display is a recent 55" LG OLED smart TV, and the streaming service apps on the TV work fine when my attention is devoted to whatever I'm watching, even if they tend to be slightly shittier than the already mediocre web UIs.
But when task switching or multitasking, my only options are reduced video quality, borrowing or purchasing a physical copy if available, or piracy.
Given how quickly everything shows up on public torrent trackers, I struggle to understand why the 4K limitations remain in place, as it obviously doesn't stop whoever uploads the torrents, and there has to be a vanishingly small number of paying customers who'd prefer to crack DRM locally or record HDMI instead of simply downloading the torrent.
Do streaming services get kickbacks from smart device vendors?