Found this interesting article http://qr.ae/8WSb7 from Business Insider that shares an opinion that bands/artists are probably not making much.
However, here's another article (http://goo.gl/FjuiN) that predicts that the global revenues of streaming services like Spotify, Pandora, etc is set to grow 5 times faster than the revenues from downloads.
So I presume streaming business is here to stay & artists would just have to deal with it. Not to sound all markety, but I've set out to address this problem & have just launched my new startup, Moshbag (http://moshbag.in). The idea really is to provide a platform for artists to launch their new releases & let subscribers download all new releases for a subscription fee on a monthly basis. We are also distributing 90% of the entire subscription fee collected to all artists.
To all those who'd be interested to know more about us, here's a link to our blog: http://moshbag.tumblr.com
P.S.- I've just posted it hacker news as well http://news.ycombinator.com/item?id=4474589
Please do upvote & comment!