The artist pay issue predates streaming, royalties for music recordings have always been poor. Unless this inquiry leads to changes in compensation rates for physically distributed music, then it’s another “new media bad” or “foreign businesses bad” situation. That last angle is seldom explored, but I think one of the next major political and economic issues of the next couple decades is going to be digital protectionism.
But, for years, it’s been a general rule that artists make their money from touring and live performances. The artist that doesn’t tour is the poor artist. In a certain sense (that’ll seem almost perverse to most people, based on how we usually view this issue), this seems almost fair. It’s the label that makes an ongoing expenditure on the music, not the performer (maintaining copyright and the issues that come up with legal rights holdings, reissuing albums in newer formats, ongoing promotion of tracks and albums, re-printing albums that have gone out of print [less of an issue in digital, but the vinyl resurgence suggests it’s still a going concern], and, much like in any employer-employee relationship, the label takes the brunt of the economic risk of an album [a poor performing album won’t directly bankrupt a performer, but it CAN bankrupt a label]). Additionally, if I perform work for a company and leave for another opportunity, even if the work I performed for the first company results in greater profit, I generally don’t get paid for that, and that’s common for most professions. But because the performer is the public face, we identify more with them than the label. Anyway, touring is far more lucrative because of the merch sales that accompany the tour, the direct pay for time worked, the difficulty in accurately bootlegging a live performance (a live stream is not the same thing as the real deal, even a professional live stream). Touring/live gigs is even more important for self-published indie groups, for all those reasons, and because it’s their major promotional channel, and this despite the fact that they have full legal rights to their music and directly earn the money that would usually be the label’s cut.