I don't know if the "battle" is truly lost or if it has just began.
Fact is that noone can stop technological changes, even not a heavy-weight such as the music industry. Actually, I think record companies are killing themselves by stamping out music downloads. Why should we pay $30 for a single CD, where 9 out of 10 songs are (often bad) copies of older songs. It seems these days in order to get signed as a music talent all you have to:
a) be a drug dealer or distributor and rap;
b) be in a no-talent boy group and have a big fat guy invest in you; or
c) kiss Carson Daily's ass. It's getting hopeless for real artists and very painful to listen to the radio.