Not to mention that there were indeed a series of four or so bubbles that made the music industry:
- The first being the birth of Rock and the emergence of adolescent baby boomers to buy it;
- The second being the next phase of rock coinciding with the social movements of the 1960's;
- The third being the baby boom echo of the 1980's and the large marekt of adolescents it brought;
- And, finally, the arrival of Compact Disc technology, which pushed everyone who wasn't buying NEW music to re-buy their OLD music on CD.
Each bubble ended in its time, and the end of the last bubble just happened to coincide with the emergence of the internet, but the music company woes really came from a confluence of the collapse of the CD bubble, a serious decline in the quality of the music they were making available, overpriceing of their product, and the fragmentation of the market place as a smaller group of buyers splintered into fans of different genres. It was this last, the collapse of the monolithic youth market hooked on one kind of music, that has the most lasting effect.
So, while the number of music companies has dwindled from dozens down to just three or four, and their sales have fallen due to all the above, those companies get to blame the internet and file sharing for declines in revenue that are a natural result of other market forces.
I hate DRM, but I really think it would be unnecessary if the price was right for the product. And the music companies are just going to have to adjust their expectations downward to match the real market.