I am not sure there's a way out for the record companies, who are still going to make huge investments into artists that never earn it back. Unlike cable television, which has a voracious appetite and is willing to pay for bad movies just to have something to show, I don't know of an outlet willing to pay big bucks for loser record albums. Lacking a new economic model or some copy protection that consumers are willing to accept, I only see bad things both for record companies and their customers. Record companies may have no choice but to try to lock-down all their music because of the revenue consequences if they don't. But Jesse correctly points out the problems in doing so.
People really do feel abused by the recording industry and with good reason.
Prices keep going up, the industry lies to it customers, and doesn't do a very good job of explaining where all the money goes. Given all this ill will, it's not surprising that people are happily stealing the record industry into what they see as submission. And the music business seems to be up against the wall. Don't screw your customers because someday the tables may be turned. TalkBack to me.