The problem is that they are clueless (Score 1)

... But eventually economics will catch up with
them and they will have to find a clue.

My guessis that a clue can be found if one starts looking
for something resembling a cache-server in a low
cost-per-unit, high-choice, high-bandwidth envirnoment.

The first problem with this "clue"
is that it represents a new distribution channel which will meet fierce resistance by rich
conservatives with huge vested interests in curren
channels.

The second problem is that these channels will continue to proliferate anyway, and
if the music industry is not inside this process,
they will not get much cash from it either, which
at some point will be unacceptable for investors,
so the conservatives will be forced out of office.
It will be bloody, but it will happen.

This latest shenanegan concerning cryptographically signed
formats is simply a non-starter. It is
just another attempt to throw good money after
an outdated distribution channel. Their loss, not ours.