Not the point
The music industry has got it all wrong, the problem is a lack of decent material - the stuff that is being produced today has little to no artistic merit - it is all about hype (as a result Xfactor type program, Louis Walsh type bands etc), It is all manufactured music (and they would make it in china if they could get away with it).
As a result, people buy fewer CD's (I have a collection of 500+ CD's bought over the years, but I have probably bought only 10 disks in the last 8 years!!!!!)
So we have what is called in Ireland "Dublin Bus Economics" - Dublin Bus used to put up the prices everytime it's passenger numbers fell, thus causing it's passenger numbers to fall further etc etc..... In this case we have a worsening product being sold to fewer people for a higher price..
Rhetorical question: How many bands that formed in the last 5 years will be around in 30 year???? - I suspect probably 0 but maybe 1 at most.
I lived in Germany in the mid 1990's and there the music industry anounced that they were going to raise the price of CD's to 50DM (approx 25 euro) as they felt the market could support that. They never got over 30 as surprise surprise sales started dropping.....
Another issue is the amount they pay big bands - the invest a huge amount of capital upfront into bands that might or might not pay off - REM went through years of producing rubbish until Accelerate!!!
So over priced junk, and paying too much to artists is the music industry's fundamental problem, they can complain about mp3 players etc etc but until they sort these things out "the only way is down baby"
My 2 cents worth...