Earlier quoted context omitted.
Let's be honest. The amount Spotify/Pandora/et al pay the majority of musicians per stream is far more than they'd make selling CD's. The overwhelming majority of music is unknown, has few fans, and will never "go platinum" nor sell out stadiums - ie, most musicians are not Taylor Swift. For all those artists... access to millions of potential listeners from around the world is an amazing advancement. The number of a…
No way. How can music simultaneously be "unknown, has few fans" but also benefit from "access to millions of potential listeners"? If they get millions of listens they aren't exactly unknown anymore. One CD sold at a gig for $10 is equal to about 2,000 Spotify plays. A t-shirt sale is double that. A mid-level band can play to 200 people a night and do $1000 daily in merch, easy (and I've personally done it). Sure, if…
"Mid-level" band playing to 200 people who don't know who they are, and might buy a few T-Shirts isn't making much either. Plus they have to quit their jobs and travel, or settle for local shows once a month (or right now, zero shows for practically the entire year). The bar or "house" might pay the band $250 for the show, split 4 or 5 ways... plus deduct any overpriced alcohol and food the band consumed. They often walk away with barely enough money to put into the gas tank.
Heck, most of the professional, full-time "mid-level" bands can hardly afford their practice space monthly rent.
Very, very few "Mid-level" bands make money. It's a passion project. Very few get lucky enough to make it to the next level and tour with some known bands.