If Music 1.0 is Dead, What is the Future of the Music Industry?

So it's happening: Music, the industry and the whole shabang, is getting turned over. Former EMI executive Ted Cohen's recently famous quote,"Music 1.0 is dead," which he pronounced at the Digital Music Forum East, was featured in an Ars Technica article, which left everybody wondering where music is going.

So assuming it's sort of like Web 1.0 this is going to be huge. I don't know if you guys remember Web 1.0 (1994-2000ish) and the switch to 2.0, but it was a great improvement. And if you don't fear change, this is actually becoming a very exciting opportunity.

Music 1.0
Records, tapes, CDs, and pretty much the whole music marketing scheme since the early 1900s.

Music 2.0
Downloading mp3s, streaming songs from web sites, a whole new and creative way to look at music making, and basically never leaving your house.

The slow extinction of music 1.0 is obviously credited to the internet and p2p software.

The Good changes
Downloading songs off the internet through stuff like iTunes is so great. You find songs that would be hard to get elsewhere like music stores who only carry the current day's popular music. Plus you can get the singles off of albums and none of the filler. The switch from CDs to mp3 player's is monumental. Convenience is key and with mp3 players (which are getting smaller and smaller) music can be utilized in all parts of the day.

The Bad changes
File sharing is obviously a big problem. I'm not ashamed to admit that I use it the software on occasion, because it's basically free and with a certain degree of moderation you can't get caught. But the principles do remain and I wouldn't miss it at all. If they would just get off the users backs (with all the law suits; RIAA) and just take down the software developers (Kazaa, Limewire, bearshare) everything would be solved.

So the internet is the link from 1.0 to 2.0. It's making it work for the best is the problem. So instead of people selling stolen CDs in the parking lot from their car's trunk; little 13-year-old girls are downloading their favorite songs from the internet.

Essentially change is good, and this will promote a lot of change. It's now up to the big wigs who have ran the music industry for God knows how long to appreciate this change.

Sources:

http://arstechnica.com/news.ars/post/20080226-music-exec-music-1-0-is-dead.html
http://www.ultimate-guitar.com/news/industry_news/music_exec_music_10_is_dead.html