[physcab]

Yeah, the music industry is experiencing some brain trauma right now. It'll happen to the film and TV industries too in a few more years once bandwidth and memory prices decrease.

Because music is so readily available, almost no one expects to pay for it. Itunes is cleaning house right now, but that's because people still want ultimate control over their libraries. I'll bet once people can be guaranteed the same level of access that they enjoy on their Ipods as they do on their phones, then Itunes will meet the same fate. Apple probably knows this which is why they are making plays in the streaming business.

What the content providers need to do is accept this fate and start building a new model around distribution and the incredible amount of information (data!) they have available to them. Package the product up in something consumers will always pay for--new devices or other peoples products (advertising).

The beauty about this business is that it hits a chord in consumer's lives. They will always want it because this content defines them in some abstract way. If content companies can learn more about their consumer's identities, they can sell that information to product makers. If you doubt all you have to do is look at the new artist product lines-- Sean Jean and Dr. Dre Beats to name two.