I think obviously downloading and the easy access via torrents, etc. to get music and movies are hurting the sales. But with album sales down, technology is getting better and it seems more people are into music now with things like ipods, cell phones that hold mp3s, and the resurgence of vinyl.
It’s like any business, Newspapers are losing money because the internet is quicker and cheaper (for both parties, although it takes away jobs). Hollywood Video went out of business in my town because RedBox destroyed the competition with $1 movie rentals. Why pay $5 for a movie you only want to watch one night? It sucks seeing these businesses go under, but you need to remember advancement in technology means things change. If electric cars become the new standard, people who work for oil companies are probably out of a job. Shit sucks, but it’s making life a lot better for more people than them.
Music is very cyclical, it was stale, unoriginal and redundant for a while. As it always does every few years, good music is slowly making a comeback. MySpace (just like downloading) gave bands more exposure while screwing over hard working bands by over-saturating music… people need to recover from it. These myspace bands who lied about their plays, never played a show and got signed are all either breaking up, changing tons of members or realizing that touring/music just isn’t for them. These bad bands clogging the internet, airwaves and highways are inspiring a new breed of underground music. Just like the invention of punk rock. People are pissed off and want to do something different because of all the bullshit. Not just different music, but playing the game a new and interesting way.
Labels like Sargent House are putting out new, interesting bands and promoting them in cool, unique ways. You need to adapt or die in this business and the people who understand not only the music industry, but the way these fads work, people who can see past short term numbersand more to lengthy careers, and most importantly, people who do this because they love it… they’ll be the ones who last. Everyone else? They’ll be fossils in a few years.