Maybe the record companies trying to find a new business model isn't working because they simply aren't needed anymore. The artists can distribute their music to a huge audience using the internet, the artists can then make all their money off live performances (which is pretty much what happens now). That puts record stores, out of business, and record companies, at least making vastly less money (I assume publicity, people to organise shows, etc, would still be needed, at least for a while). Put simply the middle man is no longer as necessary as he used to be, but instead of accepting that he's had a good run and rolling with it, he's trying to make you legally obligated to go through him anyway.