The reason for the music industry failing is rather simple. The Internet. Disposable pop stars, The Archies, Starland Vocal Band, hell they have been around since radio. But, the industry can no longer control and provide a single source for listening to music.
My kids had Internet before most household had it and someone to show them how to use it. Their music taste ran the gamut as they didn't listen to radio. They shared very little music tastes with anyone in their school except their closest friends. In the 50's through the early 2000's, radio was the single most important place to hear music. Now, not so much. The only people music industry types will and can support have to sell several millions of units just to make it worth it.
I like today better, go on Soundcloud, reverb nation, Pandora, ... and now there is a true democracy in music. Put your music out there and work it and see what happens. No more execs talking crap, no more having to listen to someone how to make you music more mediocre to please the masses, just people making music. I like it.
The only draw back is music is now a commodity and difficult to make money just on music. You have to write, damn near give it away and hope to make money playing and selling T-shirts. Old days are gone, music industry isn't dead, but its glory days are over. The industry needs a way to consolidate its delivery like radio did.
They finally (very late) have a way of selling music, but being able to sell it and to get people to buy it are not the same.