There is no really good reason that a "music recording industry" needs to exist any longer.
Before vinyl records people would pay money to see a live musical performance. Operas, musicals, concerts, a live event people can go to and enjoy. The concept of paying money to listen to a pre-recorded performance is a relatively new phenomenon. It only made sense during the short time window when the ability to copy pre-recorded music was expensive. Now that the cost of digital music reproduction is zero, there is no legitimate way for this industry to continue, and there is no real reason for it to continue other than if it is legislated to continue.
Ironically, vinyl is the one segment of the industry that well. It's been growing double-digits percentage wise every year for at least the last 6-7 years.
In 2010, vinyl sales were actually higher than in 1991, the last year the majors were distributing most releases on vinyl. 2011 looks like it could be up as much as 25% over 2010.
Why is this? Well, at least for me, it's a much better value proposition, despite being substationally more expensive. Full size art, much better sound quality, etc.
Before vinyl records people would pay money to see a live musical performance. Operas, musicals, concerts, a live event people can go to and enjoy. The concept of paying money to listen to a pre-recorded performance is a relatively new phenomenon. It only made sense during the short time window when the ability to copy pre-recorded music was expensive. Now that the cost of digital music reproduction is zero, there is no legitimate way for this industry to continue, and there is no real reason for it to continue other than if it is legislated to continue.