Slightly in regards to something /u/deandimarzo said.

Lowered cost/difficulty of producing and releasing music.

The music industry as a whole has not died, but parts of it have. I think the "industry" of music is gone. Besides the few stand out popstars - Justin Bieber, Taylor Swift, Drake etc. - there is no need or even sometimes possibility for many people to work on an album and each have one specific job. You don't really need to hire individual people to engineer, produce, mix, master, write, perform, market, etc.

The one-man-band is kind of the theme of todays music industry. Many artists can (and do) produce, write, perform, record, and market there own projects, or at least the demos. Because of this there isn't really a need anymore for so much revenue as there was in the past. Instead of paying out to 20 different people, it is more common today to see 1-5 being paid.

Because of how easy making music has become, yes there is a shit-ton of competition for people who want to make music, but it is easy to separate them from one's who want to make art (not to sound pretentious). Think of how many people say they want to make music and that ends up just being them wanting to make rap beats or DJ. Sure there is lots of money in both of those, but not really to much respect in the low to mid-range levels of fame in those industries.

Think of it like this... Just about anybody can draw a stick figure and fucking love drawing them. That doesn't mean they are going to have drawings up in museums in 150 years, but some of them may become illustrators for a living.