Also, while perhaps independent labels are not shifting as many units as they might have done in the 90s there has never been a greater shift of power towards the artist or 'artist label'.
Major record labels are screwed because they have huge overheads and a sluggish, top-down system of management. Artist lead labels can be spontaneous and keep their ear to the floor better. Digital overheads are negligible and lead times are short. Profits are near instant and will be 100% rather than a paltry avg-18% offered by majors. I'll give some examples....
Ed Shereen: was basically unsigned, Had a number 2 EP in the iTunes UK chart 2 weeks back, funded off of selling his CDs at gigs for 5 quid. Is signing a deal today with Atlantic.
Tinie Tempah was discovered after the indie distributor for his CDs rang up the head of EMI because he saw a kid coming in with presses of 10,000 units at a time.
Rinse FM: their jewel is Katy B, had a grassroots campaign and digital drive on itunes/twitter has put several tracks in the top 10. Radio 1 were completely cool with supporting a non-major act and it paid off.
Digital Soundboy hooking up with Universal, similar things with several other underground labels.
Even mid-level indies are better well oiled than the majors. See Wretch 32 pwning it this week on the Ministry of Sound label.
There are plenty of people making money still. Real money not hype driven, re-coupable record advances.