Clearly, the Internet offers the opportunity for artists to sideline the companies, but to date this hasn't happened on a large scale, although Radiohead and Simply Red have shown what can be done.
Paul Lewis, acting editor of Music Week, says: "It's hard to visualize where it's going to end. But the business is going through changes other than those brought about by the Internet. Music is not as mass-audience as it once was - there are lots of other things competing for people's time: computer games, social networking, mobile phones. That is why some companies are dropping the word music altogether and calling themselves entertainment groups."
The rights to live concerts, merchandising and broadcasting are increasingly a part of deals between companies and artists as the majors seek alternative revenue streams to offset a steep decline in CD sales. A different sort of contract was established in 2002 when Robbie Williams set up a joint venture with EMI that saw the company take a 25 percent stake and a share of profits from DVD sales, touring and other initiatives, as well as music sales.
Analysts say that a hybrid system of music distribution is emerging, one that is becoming increasingly innovative. Two weeks ago, a scheme began in the US that allows iPod owners to download songs they hear over the speakers at Starbucks coffee houses directly on to their device. The price? Just 99 cents.
The music companies know they have to adapt, like other industries, if they are to survive in the digital world, where the cost of selling online is essentially zero. But how they do it, profitably, is by no means clear.
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