I remember reading in my college economics class about how some businesses who had achieved monopoly status lost out to upstart companies. In every case it was due to how they defined their business.

The railroads lost out to trucking because they failed to see themselves as a TRANSPORTATION business. They pigeonholed themselves as RAILROADS, nothing more. They had enough capital at the onset that they could have owned the trucking business from the get-go, but they lacked the vision to see the hand writing on the wall.

The swiss watch companies were approached with digital watch technology from its inception.. but instead of buying the technology and monopolizing the business, they laughed at it. Ultimately, It ate their lunch.

You can argue that a hand made swiss watch is better.. and of course , it is... but when there are lower priced alternatives that provide the same commercial benefit, fewer and fewer people will be willing to pay for the better product.

And so it is with music