The distribution channels the end user sees are the same . And, at least for the last 35 years as far as I remember, the prices have stayed the same or went up . The users of recorded music want to use it differently than it is delivered. For example, they like mixing and matching songs. Getting just the songs you want is one of the great features of Napster.
Kids love making mixes for themselves or friends.
One of the things driving David Winer of UserLand's work with Radio UserLand is sharing playlists. We listen to radios that don't play whole albums, just mixed songs, and hop from station to station. Yet, despite this way of use, the recording industry still sells albums of multiple songs they decide to put together. Singles, which are rarely available, are quite expensive. The days of buying an album or two a month are over.