Solution is "digital efficiency". For example, mp3 allows artists to leave at any time, artists get 50 per cent royalties, can have special targetting such as sending e-mail to all fans in a particular area where band is about to give concert.
Issue is that we have now way to separate bits from Intellectual Property via internet, and this will change the way that music is distributed. Music is the simplest case of this, in that it can be done "now". Similar problems with arise with video, etc at later time.
Can have multiple formats, but need means to transfer terms and conditions of use, such as "ok to play this song three times until next Thursday" -- this is goal of SDMI initiative.
Today have oligopoly -- 5 companies sell 87 per cent of the music. On pragmatic level, unrealistic to expect securitysystem that will restrict how people will use content. e.g., today cd discs are not encrypted, so people can make copies, but can't make cd from a2b music format. Result is that vendors will have to add value to maintain price (current model of $15/cd won't persist), or else reduce price.
Music industry is mature with structure that is decades old, with tight control of distribution. There will have to be new model for internet. For example, music is given away via radio, and broadcasters are given special exemptions, but there is yet no realistic solution/approach for internet radio.