This is payola in the modern age. If a record company gives enough money to Spotify, they'll promote the hell out of it and guarantee it's a hit. So the record labels with the most money are the only ones that can make serious money.
Does Spotify disclose that this is paid promotional content in the app?
It's shown right there in the thumbnail. The text reads "Sponsored recommendation". After some initial conditioning, it seems easy to ignore it after a while, just like the first few Google results or other ads seen across the web.