Spotify´s Business Model/Revenue model

I love music and I´m sure everyone here feels the same thing. I love Spotify and think it´s a great service. I´m sure you guys are using other great services that are similar to spotify. I pay 9.99 dollars a month to get the latest and greatest from the music world. The good thing is most new albums costs around 14+ dollars each in iTunes. In spotify you only pay 9.99 dollars a month and get multiple new releases from great artists.

In October 2010, Wired reported that Spotify is making more money for labels in Sweden than any other retailer, "online or off".

During 2010, Spotify paid more than €45 million to its licensors.

My Question is how can spotify earn money? How can artists earn money from spotify ( or any similar streaming service(s))?
How is the business model? are you renting the songs you listen to? We don't own the music we listen to via spotify?