While there are very few hard facts in the article to support his claims, I tend to agree. The current business models for music start-ups do not work.

That being said, music industry executives are not as dumb as we see them. The music industry has a hold on America that is not going to fall soon. The industry is pushing artists to sign 360 degree contracts so that record labels do not rely solely on record sales. This will encourage distribution of free music in order to increase tour sales which record companies are mostly cut out of. This will make the ultimate surrender date a change of model, not a killing of the industry.

The venture industry is out now because they realized that the record companies control the market and aren't too eager to give others control of their product.