How does radio compete if it's just a bad version of Spotify?
Radio competes because it's omnipresent. It doesn't require an internet or cell connection. It's free. No username or password. If you have a device, you can receive it. In today's world, with the potential for identity theft, there's value in something that doesn't require a subscription.
On the other hand, there are things Spotify does that radio can never do. Listeners want to skip songs. They can't do that with radio. Listeners want to make their own playlists. They can't do that with radio.
Radio was doing unhosted music formats dozens of years before there ever was a Spotify. If there's an audience for it, and it attracts advertising, then it's worth doing. This idea that all of radio was once live and locally hosted is mythology.
What is between the songs is what differentiates radio from those streaming services. And a big part of that is who is on the air and what they have to say that is interest to the listener.
I can be, or it can be an interruption. It depends on the listener. Those of us who work in the business know that not all listeners want the same thing. So the job of a programmer is to anticipate that, and have options available for multiple needs.