John Dvorak makes this interesting argument:
Copy protection schemes, the Digital Millennium Copyright Act, and lawsuits against file sharers are not going to save the music business. In fact, the opposite is true. I’m convinced that the shuttering of the original wide-open Napster almost four years ago was the beginning of the end for the recording industry. This is because Napster was not just an alternative distribution network; it was an alternative sampling system.
Dvorak is right about the aborted potential of Napster to power growth in the music industry but it was never going to survive in its old form with or without Napster like sampling capability.
I can’t predict exactly how it will transform as such things take on a lives of their own but I do expect to see massive disintermediation despite the best effort of the faltering industry dinosaurs.
Napster was the tip of the meteor so to speak. The RIAA, Warner, Sony, etc., congress, the FCC all need to just get out of the way because we will have our music and we will have it at the price and in the form that we find useful and enjoyable.