Are people on here just making stuff up?
1. No streaming service is making money. Spotify, the largest, is seeing losses increase year on year still - over €160m last year.
2. Of Spotify's last reported €1.08bn revenues, €882.5m was spent on royalties and distribution costs. Most of what end users pay DOES go back to rights holders.
I think the issue with your second point is it goes back to rights holders, not the artists necessarily. It's going to labels, and they have awful contracts with their artists generally, particularly when compared to CD sales.