How do you create a 'middle class' when there is no money left in the industry for smaller artists? Pandora pays the superstars well and if you aren't getting millions of plays, you aren't making enough to even provide for yourself.
This all started with file sharing 15 years ago. Everyone thought they were helping out the independent artists, but in reality, it made it so they could no longer compete without a huge corporation backing them. File sharing has only helped big labels by increasing the barrier to entry.
I know so many independent artists that were making a decent living (not rich, but enough to support themselves instead of having to get a job) selling music online. File sharing changed all of this. The value of music (CD/MP3s) slowly approached 0 and now that we have streaming, copyright infringement still hasn't gotten any better, it's worse.
Live shows, the profit model so many people tried to use as justification for sharing, don't really pay much unless you are doing huge venues and have big label connections. A small gig might get you a couple hundred bucks in a night. With gas, time, and splitting it with everyone in the band, there isn't much to be passed around.
This also puts many of these artists in completely desperate situations, where they will sign pretty much any contract. The big labels know this and use it to their full advantage.
The big corporations with tons of cash reserves will always be able to survive the slaughtering of an industry's profits...and we still have all of the major music labels. What we don't have is many of the independent artists and labels.