My favourite website for music right now is Bandcamp. Artists themselves get all the profits, you can listen to the whole album for free - and you can pay any price you wish for the album above the minimum price (some smaller artists can't afford to just let people pay $1). All albums also come in a huge amount of file types.
I also hear Turntable.fm is growing in popularity right now - unfortunately I can't get in on that action because I am not in the US.
This is my friend Pam's Bandcamp page, it should let you see what I'm talking about: http://pamshaffer.bandcamp.com/
Edit: If you ask me, the trick will be to make people want to pay for your music. This means that artists need to do it THEMSELVES. No big record label is going to risk a huge marketing campaign on a no-name who makes strange, out-there music. Which is why the current market is saturated in poppy-filler-crap. This is a GOOD thing.
Peoples future has been taken out of the hands of big faceless corporations and back into their own hands. Whether you float or sink is dependent on how much you are putting yourself out there. Trust me, there is a market out there for EVERYONE and catering to a niche market will get you a very VERY loyal fanbase that will look out for you more than any of the fans of these one-hit wonders will.