I wouldn’t doubt it. All those freebies have to stop at some point. Sadly it doesn’t take long to listen to the whole catalog of a particular genre on LiveOne. So that’s a hard sell to get me to pay for it when I already have Apple Music and everything that comes with it. I’m sure people with Spotify feel the same way.
I don't know LiveOne, but Spotify was a full access, only anonymous. Considering that we are paying for data connectivity (i.e. nowadays for nothing) it wasn't a bad idea keeping some services included.
For instance, it happens often that audio apps such as Spotify lose the login, and you realize that only while driving, so not the most comfortable time for fixing it, even just by means of QR scanning. So having a fallback wasn't bad at all.
That said, Spotify's audio quality on Tesla ain't great, but they have a better interface than other services (tried Tidal, Amazon, etc.).