Yeah, if only... But since that didn't happen, they're struggling to keep their heads above water until they do figure out a solution. In fact, Columbia records is recruiting a "task force" of 80 or so of the brightest college students in Business, Law and Music and sending them away for the summer in hopes of devising a solution. If you have any feasible ideas, Barnett & Co would be more then happy to hear them and I would gladly forward them to him...
Business, Law, and Music? What about TECHNOLOGY?!!! The labels just don't get it. The only solution is technology. Here's what they need to:
CONTROL THE FORMAT!!!
The big five need to put their heads together and develop a DRM format. Don't get greedy, but allow anyone --- from the iTunes Music Store to some guy in his basement --- to sell tracks protected by DRM.
Let anyone --- hardware company, software company, content creator ---license the DRM technology for free.
Make the DRM interoperable so that we don't have a player war and so that for once the consumer actually benefits.
By creating a standard format and DRM technology, everyone benefits. I can buy songs online and not worry about whether or not they will play on my iPod as well as my phone or stereo or whatever. I can buy a new device and not worry about losing all of the music I've bought. That's why I still buy CDs. Music from the iTunes Music Store won't play on my SlimDevices SqueezeBox. Too many formats and incompatible products just make consumers angry - and that leads to piracy.
If the industry came up with its own format and said "Apple, Microsoft, Creative...and everyone else out there...if you want to sell music online, you have to implement our format", the tech companies would have no choice but to adopt the format. They'd hate losing control, but what choice would they have? Not sell music? Have no content for their devices?
The industry needs to stop outsourcing bad technology (Sony's copy-protected CDs...ugh!) and start rolling its own. The landscape has changed and, like it or not, content companies are going to HAVE to become tech companies too. Start now, create a fair DRM system shared by all major labels and open to anyone, and give away the DRM technology to anyone wishing to implement it.
But I'm sure all of the Business, Law, and Music wonks will simply suggest more lawsuits, more greedy deals like the one between Micro$oft and UMG, and more hardship for the consumer.
I've been in the tech industry for a long time. I (fondly) remember the days of "cracked" games on my Apple II. The simple fact of the matter is, piracy cannot be stopped. There's always someone who is one step ahead. It's a fruitless battle. So you must make it easier for the consumer to not become a pirate. Apple has done this with the iTMS to a limited degree. However, if the industry truly wants to address this issue, it will innovate, not litigate, it will think outside the box, not make stupid deals like the one between UMG and M$.
The industry needs to work together...or it's Hello BitTorrent!