I believe the argument is overstated. I’ll offer my own experience to provide context. I’m a 50+ white collar worker and a big fan of Spotify. I grew up listening to big hair rock bands in the 70's and 80's. As I’ve grown older I’ve lost touch with the contemporary (niche or not) music scene. I can still recall specific bands and songs from my youth but I’d quickly lose any trivia game focusing on today’s artists (sadly).
With Spotify I look for quality play lists which have been cultivated by people who have stayed current. I still can’t name the individual artists — but I listen to the tracks I enjoy. These are artists I would never, ever encounter if I used a traditional downloading service.
People like me (clueless old farts I suppose) are an entirely new opportunity for these artists. While I can’t speak to whether the fractions of pennies associated with my listening is a meaningful amount of money I do know those pennies would not exist without the streaming services.