The broader reason the industry's in a state is that there's a lot more things available that people can spend their money on other than music, and out of all the available products, music is the easiest to get for free. So coupled with the fact that the industry was far too slow in coping with the fact it's so easy to get illegaly, and was far too quick in blaming their potential customers, it's not doing too well(well, the people at the top who are actually to blame are still making a living, everyone at the bottom isn't, but everyone blames downwards and it ends up seen as the consumers' fault for not wanting to buy what they're selling)