The production, the marketing the, distribution... EVERYTHING has changed for the music industry in about 15 years. They have no future unless the Internet is tightly controlled (which it cannot be.)
The RIAA and other major music industry players may have no future, but there is definitely a profitable future for a "music industry" populated by entities that are willing to adjust to the modification in distribution channels and consumption habits.
As it stands, the old-fashioned fogies are simply in denial and doing their best to prevent the marketplace from changing because they don't know how to use the new technology and they don't know how to succeed in the new marketplace. That doesn't mean that there's no future for the industry as a whole, it's simply the way entrenched players eventually die.
I'm with you on this one. It's less that the RIAA and major labels 'don't know how to use the new technology and...succeed in the new marketplace' so much as we're currently (still) in an in-between stage of market control.
Take for example Radiohead or Louis CK. Their previous successes allowed them to produce, release and distribute independently of big entertainment — but I don't think we're at the point where a small independent artist can effectively take their own music to market in a manner comparable to using a label. I don't have data to back this opinion, but high profile successes in independent distribution have been biased toward artists who were well-known and previously successful.
I don't think it is fair to compare Radiohead or Louis CK to that of a lesser known artist in this regard, because the bias is all in the media coverage.
Bands have been self releasing (outside of "big entertainment") since well before digital distribution, because signing to a label isn't always feasible (financially or creatively). Digital distribution makes just makes this even easier.
You only know about Louis CK & Radiohead because that is that the media covering. Digital distribution & artists self releasing material is happening and has been for a while, but no one knows because unless they are already into these lesser known bands & record labels. You have to think of it like this: "Lesser known artists can be more successful by releasing their own material digitally than they would by signing with a label." Or "This independent record label can lower their overhead and make things easier for their bands by embracing digital distribution."
" Internet is tightly controlled (which it cannot be.)"
Oh, it can be controlled alright. SOPA, PIPA today, tomorrow FIPA, DIPA and FuckInternetPA. One of them will pass, then more and more.
And then you're sitting on cable tv. Clicked that link? Invoice has been mailed to you. Clicked that link? House search. Clicked that link? Prison cell prepared. Thank you and good bye.
Oh, you will watch what you do online, you will not click on links without knowing before hand what is behind it. Good luck with that. You will not read just about anything, you will not write whatever you want, certainly not where ever. You will censor yourself before they come to censor you. They will produce and you will consume.
Sadly, you're probably right. It won't be long, 10 years tops, before the US is doing deep packet inspection and hijacking sessions as a matter of course.
It's away from exploitation of artists and the control of artistic message.