In the modern age, what does 'a spoiled child ' mean?

I have been thinking about this a lot lately too. My brother in law considers our kids "spoiled" because we have them in sports and music lessons. He says it is not a privilege its spoiling them. However, his wife gives their children sugary sweets all day long, takes each kid shopping once a week (they have 5), and even their 7 year old has an ipod. To me, sports (outside of school) and music lessons is not a necessity but also not a reward. Its something constructive. Whereas shopping every week is not.