License for album cover

Sorry adding a cover on spotify is not merchandising not reselling, it seems that you didn't understand well the type of streaming services that the person is mentioning. Streaming platforms are only using the image (on web or mobile app) to illustrate the music while the music is being streamed, the main value is the music, not the image, the image is not printed physically, and not sell as part of any physical item, as the person is not considering printing CDs (that's a different story), and for that reason should land in a simple standard license. Additionally your terms are clear that the restriction of less than 500,000 visualisations is not applicable when these are part of the use of a web or mobile application. 

From your terms: you may not, in the aggregate, (a) cause or allow a Work to appear on more than 500,000 printed materials (including copies of such materials); or (b) incorporate a Work into a live, recorded, or digital production if the audience is expected to exceed 500,000 viewers, except the restriction on audience size does not apply to Works displayed only on websites, social media sites, or mobile applications;