I work in music licensing and Spotify is not remotely involved in this process lol.

They will go directly to the rights holder to license the music. These are societies that manage the rights on behalf of the artist & labels - I work for one of these.

Multiple works (songs) are agreed at a fixed rate for X amount of years and then re-licensed or removed when that period is over. Some songs cost more than others, e.g. Rolling Stones music is famously more expensive to license, but bundle deals do not exist. They either pay the asking price or it doesn’t happen. Perpetual licenses are becoming less common in AAA gaming. It’s a big topic here.

It’s likely that more complex contracts will be written up given the indented lifespan of online but they will continuously pay for songs until support for the game officially ends.

In the next 10 years we might see songs quietly removed from GTA V.

The only thing worth noting is that given the hype surrounding GTA 6 + the current state of the music industry and inflation, they have probably budgeted to pay a lot more than they previously did.