There's no doubt about how big is the crisis in the music industry. And that goes well beyond the simple "hey, it's all down to piracy" because, frankly, that excuse is getting old but we all know that.
Too many artists ? Blame it on the usability and affordable prices of cool hardware and softwares but it's a great time for audio (and visuals) creators.
Not enough labels willing to invest money in developing artists ? Sure, there are cold feets but numbers don't lie (if you can get them)
Not enough creativity coming from the composers and re-spicing of old formulas for bands ?
Not enought ways to get the money you've earned in this business ? (altho Kollector has a clear idea about that precise point)
Too many other areas people can get entertained with ?(mobile phones, Ipads, videogames, movies,...)
The list is endless, and it's a topic one cannot hope to close in a simple blog post, but here's an interesting angle from Frank Woodworth on how to set up a record company that will
take full advantage of this time and age.