Bordowitz is particularly disappointed with the record business' prideful responses to a recent challenge to its financial hegemony: file sharing. Although one study shows that 70% of those who illegally downloaded music went on to purchase the CD, the industry has attacked these (mostly) young people by slapping fines on them, upwards of several thousand dollars. These downloaders are music fans. Can you imagine if another industry behaved like this? If people who sold apples attacked and fined customers who liked, say, apple sauce? Ridiculous.

Other changes in the music business landscape are the centralization (and attendant risk-adverse behavior) of terrestrial radio, the advent of internet and satellite radio, the disappearing distribution outlets replaced by the overweening and arch-conservative influence of Wal-Mart, and I-Pods and their clones.

The changing demographics of the audience are discussed as well. The majors typically aim their marketing at the 12 – 25 year old group, but these consumers spend their entertainment dollar also on video games, cell phones, DVDs, etc. Each of these products gives the perception of hours more entertainment than purchasing a CD. Additionally, with the decline in art and music funding in schools, this group has little or no exposure to anything other than what the popular media offers it. On the other end of the spectrum lies the 30 – 56 year old demographic. These consumers still purchases CDs but are not as easy to compartmentalize as their younger counterparts. Their tastes are broader and more sophisticated. However, when 5% of the new releases each year actually make a profit – and thus support the release and distribution of the other 95% — one can see why the majors would focus on a blockbuster sale to their younger customers.

Bordowitz sees a sustainable model for the music industry in the book business, where companies can sustain themselves with sales of 30-40,000 copies and an occasional bestseller. Smaller runs and the company breaks even. Of course, this is not as sexy as the current high roller adventure of the music business and there are still issues of the changing technology. This is the author's suggested model for the future, but even he, with his seasoned experience in the business from artists to label to management to production, cannot predict what will happen next.

This book would make a great text for a Business of Music class... or would that perpetuate the problem? Certainly, musicians should read this. Know thy enemy!