You're touching on alternative business-models. Alternative as in different than creating shit then selling it directly ... a general business model that has worked since money where invented.
And the problem with these business models is that they aren't general enough (working on a case by case basis) and don't even survive the onslaught of technological evolution.
Music artists can make money from concerts (they always did). But in case you haven't noticed, theaters are in big trouble, artists many times having to seek out employment in sitcoms/trashy TV shows to make a living. One month ago I also watched an opera show in 3D with surround sound ... it was like being there and it will only get better.
Yes, you can find artists that do well by riding the Internet wave / the freemium business model. That doesn't mean it works on a bigger scale or that it will continue to work 5 years from now.
Creating shit and selling it if it provides value is the only sustainable and general business-model. Society would be worse without it, unless you're talking about getting rid of money altogether.