Is supply destroying demand?
One of the things the digital age has done is unleashed pandora's box of content...It used to be that the only music the public got to hear outside of a local bar was vetted by many layers of filter and massaged by hand-picked professionals into a highly polished product. The public only got the best of the best (at least according to the priesthood's taste) and paid a premium.
Indie labels appeared as the priesthood's grip weakened, but they were just another layer of vetting. Still, they coined the "alternative" moniker, much of which can be mocked along the lines of the great book of that era, "Commodify Your Dissent" which argued that "non-conformity" was just another marketing angle for established corporations.
Finally digital downloads appeared and the promise of direct unfiltered contact between musician and consumer was realized. Alongside, DAWs and home studios got more powerful and cheaper and now any idiot can make something in garageband and get just as much visibility on myspace as John Mayer or whoever.
And with negligible unit costs music is routinely given away at varying quality levels, by amateur and major label act alike. If you want to hear your hero, you can at 96kbps/22Khz on myspace, anytime, for no charge. There is so much to choose from you could just surf from act to act, never paying for anything, getting an idea of the "scene" but not really participating in it or funding it. Musicians (even major acts like Radiohead) are now just resorting to "tip jars" where you can pay whatever you want for the digital copy of their latest album.
We've all made ourselves just buskers along the information superhighway.
And in so doing we have, more or less, achieved the egalitarianism that a lot of idealists in this business long wished for. Radiohead is just playing on the same street, with their guitar case open too, a few feet from you or me. But while they might draw a bit bigger crowd (much from their reputation earned in the now-lost world), the raw overload of all the choice is daunting to the consumer.
If you can imagine a whole city, with buskers of every description every ten feet on every street playing their hearts out, that's more or less what the music world looks like now. And the consumer is likely lost among the cacophany and so overwhelmed by the choice that they feel unable to "vote" with their wallets. I believe declining overall record sales have less to do with piracy and more to do with simple analysis paralysis by a consumer that doesn't feel able to declare allegiance given so many options.
So do you invited experts feel my analysis is wholly or partially right or wrong, and to the extent correct, what can or should be done about it? Can collaborative filtration of the consumers, something tried since the days of firefly.com and continuing but yet to really take off, be improved or marketed enough to narrow the field? Is a narrower, filtered field actually better for all of us, and the free-for-all actually a dystopia? Is this a transition period, with a new order of "priesthood" about to emerge? And who or what would they be?