I believe the opposite would occur. With limited buying power, especially when that is caused by political control, the selection of music would actually be narrower.
The internet has done a fair bit for "indie" music. Imagine if the label owners got their way. It'd be like Japan. A new star every year, and all copies of a reliable model.
You don't get better products because you have limited choices, but you to get more choices if you have more resources to devote to them.
Much of what we have today is overhyped, well produced garbage, while some of the good music is the result of somebody with an instrument made from found materials just enjoying himself. The most expensive paints and the finest quality canvases do not make you an artist. Getting by with crayons and typing paper doesn't prevent you from being one. Someone standing over your shoulder and informing you what subjects are acceptable, and what subjects are not, might. Needing to feed your family at your 10 hour a day, 6 day a week job, probably will.
Again, amateurs having fun can produce a lot of good stuff, even if you do have to wade through the chaff, and all the garage band covers, to find it.