Whenever society goes through a major upheavel (industrial revolution, internal combustion engine, electricity, internet, etc), some people look to the future... while others cling to the past.
The record companies are trying to hang on to a business model that brought them huge profits in the second half of the 20th century. Now, when their livellhoods are threatened, they lash out and try to bully people.
They're the modern equivalent of the ostler, the hand-weaver, the blacksmith and the lamp-lighter. Their monopoly of the music business is over; they just don't seem to know it yet. Your average computer-savvy 10-year-old will have a more realistic understanding than the record companies about what the music 'industry' might become in the next, 10, 20, 50 years.
If the record companies hadn't tried to screw their customers for every last penny - and drop good musicians from their roster, to replace then with 'manufactured' groups - I'd feel more charitable towards them. Watching their power and influence dwindle is a harmless spectator sport. The next few years are going to be very interesting...