Both Spotify and Grooveshark pay royalties to labels that they have a license agreement with. But if you don't want your stuff on a streaming service, users will upload it to Grooveshark anyway.
This is also the reason why there is so much cool stuff on Grooveshark that is not on Spotify. Forgotten albums, bootlegs, remixes and mainstream music from certain bands. Grooveshark will also never show you a "this song is not available in your region" message.
Both Spotify and Grooveshark pay royalties to labels that they have a license agreement with. But if you don't want your stuff on a streaming service, users will upload it to Grooveshark anyway.
This is also the reason why there is so much cool stuff on Grooveshark that is not on Spotify. Forgotten albums, bootlegs, remixes and mainstream music from certain bands. Grooveshark will also never show you a "this song is not available in your region" message.