According to Spotify, they are cutting a fair deal with labels, who are then screwing over the artists. But the full numbers are not available, so it is tough to say. I think the idea that streaming music will destroy the music industry is a bit extreme.
Screwing over the artists is absolutely nothing new for the music industry. I wonder what percentage of musicians made minimum wage or above under the old model?
http://paidcontent.org/2012/12/10/interview-spotify-exec-on-...