Economics 101: Use the infinite to increase the value of the scarce. Get people to hear your music, then use the exposure to leverage more profitable revenue streams. If all you do is wait around for Spotify or Pandora to pay you a living wage, you have no business being in business. Nobody owes you a living for just making music available. Figure out an income model that makes sense given current market conditions and chase it. Some artists will do it better than others, but it can be done; looking at these royalties in isolation paints a much bleaker picture than the broader reality would suggest.
The whole article assumes Galaxie 500 can cut a record and wait around for the money to start flowing. That's nonsense. He talks all about how Pandora's all about capitalization...why isn't Galaxie 500?