The music industry as we know it is dying. Let it die.
Music is free and I honestly don’t think downloading should be illegal. In fact, a lot of bands are giving their music away for free on their websites with the option of paying a small amount for better quality recordings, as well bundles including special edition versions, t-shirts, etc. This money goes straight to the band and everyone involved with them and not in the pockets of people like Apple, Warner, Sony, etc.
Trent Reznor even put his own music up on The PirateBay XD
If musicians want to make any money these days they will go on a reunion tour, play a lot of shows, connect with their fans in any possible - Twitter, YouTube, their website - and sell a lot of merch. Give your fans options on how much they want to spend.
There is still money in making music, just not in record sales. Now artists can’t just retire and then sit back and watch the money come in as people buy their CDs. Bands actually have to be active to make money nowadays, no more living off of past success and record sales alone.