Monopolistic strangle holds on "art" just don't work.... the very idea is stupid IMHO.
Until they realize that, they will continue to decline. The internet has forever changed distrabution as well. We are fast approaching a time where removable media, like CD/DVD/USB-keys etc, just don't make sense for casual applications- like music, or movies. The network is anywhere, anytime. Sure removable media will always have it's uses, but buying CD's is not something you will see the next generation doing.
But that doesn't change the attitude, here's a simple comparison. In sports ... like basketball for instance, you get scouts for the NBA, for the NCAA. Where are the scouts for the music industry? Oh wait, we have American Idol
They will go bankrupt if they don't face the facts.