I posted this in another thread, but here's another artist's take on it....Porcupine Tree's main man Steve Wilson:
"This is the worst time in history for the music industry. Everyone agrees on it, artists and labels - everyone involved.
I believe that ultimately what will happen is that recorded music will become something no one will pay for. People will expect to get it for free, even now a lot of people don't think about buying music, just to download it. Recorded music will become an advertisement for the live show. I already see it in Porcupine Tree concerts, where the attendances keep on growing, and the record sales as well, but not in the same proportion.
People get to know the band from downloading on the internet for free but they pay for the shows. This has a positive side, because it means that bands who play real instruments, and can manage a good live show will survive, and the kind of manufactured artists like Britney Spears won't. These are interesting times.
Also, music is much more available now days, it's getting more and more into people's life, especially that almost everyone has an Ipod now."
Read more at:
http://www.alternative-zine.com/interviews/en/110
Note that PT has already taken what I think is the right steps. They work with an online store,
www.burningshed.com , where they sell quality legal downloads at different price levels, i.e mp3 and FLAC, along with special items not available elsewhere. However, their audience of audiophiles is different from the casual fan, I would think, so this might not work for all.
Burning Shed also states that "all rights remain with the artists whose music we release and significantly more profits go directly to the artists than with sales generated elsewhere."