Let's be straight, this is probably bullshit. I've heard so many nonsense numbers about the music industry that I refuse to believe them or rely on them… even if they support my position. No wait, especially if they support my position. I don't use made-up shit to disprove other made-up shit. That's like arguing who would win a fight between Santa Claus and Jesus.
But there are still 2 points we can take from this graph.
The first is that the recording industry and the music industry are two very different things. The record labels only represent one small (and increasingly obsolete) part of a much larger industry. Remember that the next time a record exec is bitching about piracy killing music.
The second is that recorded music is only one of the ways an artist can make cash. There are a whole host of other revenue streams a savvy artist can tap into, including live music (and from the graph it appears that they can make a ton), merchandise, sponsorships and endorsements. Even in LawPUNK's free music utopia, artists will fill their hot-tubs with champagne and supermodels.
We're going to be returning to these 2 points again and again, so get used to them.