To me its all about the live show. Thats where the money is at. Use the music/album as your calling card, and just to promote the live show. I work a lot of rooms in NYC and shows get sold out every night. People will pay $35 to $100 to see a show. And then cop merch- cds, shirts, photos with the band, etc... Its not baller money, but if you get a lot of hype and promotion courtesy of twitter, fb, youtube, itunes, then you can fill a room. There is still money to be made, but on a realistic level, not drinking Cristal in VIP money, but enough to live on.
But there is no better time then now for the little dude to get heard. Especially overseas where different markets take on the music. Gone are the days of the bloated majors, planning albums in board rooms. And selectively determining who will become the next big thing due to stupid shit like image and marketing, while the little dude with chops is left out in the cold.
I personally like the shift and I think it allows better music to be introduced and allows real markets to be created with niche demographics. Yeah it blows for some people with expectations of bucket loads of money, but it is what it is. Deal. The business now needs to break away from the mold and find some unique ways to bring in revenue now. Time to get creative. Especially now with all these digital mediums like computers, ipod/pad/phone's.
But its rough all over. On a personal level, the recording studio I work out of all the time, is shutting its doors this week. I think these guys took a beating the worst in the industry. Technology and being able to cut an album with a macbook, mbox, and a $300 mic, fuked the money all up for the studios. Some real big names dropped in the last few years. Which is sad because you loose great rooms, great engineers, and great gear, that really makes a record sound as good as recordings of yesteryear.