I learned of Ingrid Michaelson when I heard her "Winter Song" collaboration with Sara Bareilles (vidcap) over the holidays. Sara had a very catchy song last year with "Love Song."
Ingrid has leveraged Web 2.0 to jumpstart her career and thwart the mainstream model my class saw depicted in "The Way the Music Died." In 2006, Ingrid uploaded her entirely self-produced album Girls and Boys to her MySpace page. There, it caught the eye of a licensing and management firm who got her songs out there in a big way, including 3 on Grey's Anatomy. That show, with its audience demos and ratings can catapult artists. The Jealous Girlfriends also were featured on the show which helped to get them exposed in a big way. Here's a link to TJG's "Something in the Water" on Last.fm. Ingrid's exposure got her album Girls and Boys to the #2 spot on the iTunes charts. (Today, global and US music download sales are 15% and 30% of total music sales, respectively. iTunes is around 57% market share of online music.)