These are exciting times. We are in the midst of a technological revolution and recording companies should stop wasting their efforts in trying to cripple the internet and fight change in a scramble of keeping their money. They should find that being able to download music over the internet allows the spotlight back on the artist and allows them to gain more fans and exposure. It allows a more personal connection with their audience which is good because consumers buy a record because of the artist not because of the record company producing it.
"Why aren’t record companies embracing this great opportunity? Why aren’t they trying to talk to the kids passing compilations around to learn what they like? Why is the RIAA suing the companies that are stimulating this new demand? What’s the point of going after people swapping cruddy-sounding MP3s? Cash! Cash they have no intention of passing onto us, the writers of their profits."
Even those recording companies with selfish motivations should be able to recognize the amount of profit that could be gained from this change so that they are able to prepare and adapt to this new environment if they want a good chance in becoming forerunners in their market.
Scratch your old business models and start doing market research.