I think one of the best ways to at least look at why the music industry is really reeling is to take a look at album sales and singles sales.
When CDs hit the market, there was no compelling way to get singles. CD singles were relatively rare, and few people wanted to buy cassingles instead of CDs. This is at odds with the the music industry existed up until that point.
Take a look at the list of best-selling albums and best-selling singles on Wikipedia. Sort the categories by year. There's fewer than 10 high-selling singles there from 1992-2004, while there are dozens of multiplatinum albums from the same era.
Only to some degree; single sales have also partially dropped off because the relative cost of albums has decreased. I bought my first album in 1987-8ish for about £8.50 - the same purchase today would most likely be £10 and back catalogue releases are very frequently on sale for about £5-7. Factor in 24 years of inflation and....
tl;dr - albums now cost much the same as singles used to in real terms, but have more music. Why shouldn't people buy them in preference?
When CDs hit the market, there was no compelling way to get singles. CD singles were relatively rare, and few people wanted to buy cassingles instead of CDs. This is at odds with the the music industry existed up until that point.
Take a look at the list of best-selling albums and best-selling singles on Wikipedia. Sort the categories by year. There's fewer than 10 high-selling singles there from 1992-2004, while there are dozens of multiplatinum albums from the same era.
http://en.wikipedia.org/wiki/List_of_best-selling_albums_in_...
http://en.wikipedia.org/wiki/List_of_best-selling_singles