Comment Live Shows (Score 1) 410
One thing that hasn't been mentioned is the live show, where the "instant gratification" model is turned on its head. If the group only handed out flyers with a web site on it, many people who would have been willing to buy a CD right then will have forgotten about it by the time they get home.
In a few years perhaps a cell phone-like device will be sufficiently ubiquitous and well-developed to allow everyone to download the music while they're watching the concert.
Until then, the best answer is to have phyiscal CDs at the show and digital downloads on your website.