The unfortunate part is that the artists have basically no power when bargaining with the record labels.
In contrast, take the rapper Tom McDonald, his music actually hit the top 100 charts[1][2] and he's not signed to anyone. Just him and his girlfriend creating music. Was trending as the #1 download on iTunes for a couple weeks, etc.
Artists make a deal with the devil, make more money, then complain. Yet, with today's ability to distribute - it's not required.
I do think there should be an update to the spotify payout system, but Spotify doesn't have negotiating power; they need the record labels. With the record labels Spotify can get improved music, etc. Spotify is paying for the privilege that's why the smaller artists aren't making very much (the premium payments go to record labels).
I've seen a big rise in conservative rappers on YouTube. I've got a conspiracy theory that the GOP is funding them like a record label. If so, it's a sweet deal for artists. The GOP cares far more about cultural effects than they do the money from the music.
However, the major point is that you don’t need the distribution.
Louis CK famously released a comedy special online with a download and just asked people to pay and not copy and share. He said he made more money off that than any other special he’d done.
https://www.youtube.com/watch?v=jUNuNilqrDQ
It's hard to find a reliable source here but there was right wing folk music being made to combat the threat of communism in the 60s.
Courtney Love realized this over 20 years ago: https://www.gerryhemingway.com/piracy.html