I don't see this downloading wrecking the established bands but it surely dents the coffers of the record companies and this will inevitably lead to less and less new bands being signed up , and that will kill music IMO.
I'm not sure about that either. There's a very healthy live music scene in Leeds, for example, where it's actually quite difficult to get rehearsal space at a time that's convenient to all members of the band, especially if you have full-time jobs as well. I'd imagine most big cities are the same.
Occasionally you'll get a band like Arctic Monkeys who basically 'broke' themselves on the world via the internet, but it's still mostly done the hard way – gigging, gigging and more gigging…
For those of us starting out on our band's careers, it's actually a lot easier to get started now than it was say 20 years ago – I speak from experience.
The price of Recording Studio time is still pretty much the same as it was 20 years ago – about £1 per hour per track – so in real terms getting a good recording of your band is actually cheaper now than it's ever been.
Once you've got the recording, getting the music into the ether is simple – just sign up to Myspace or AmazingTunes, Zimbalam and the like. You can even upload to the BBC for your local radio station's local bands
Then comes the hard part. Getting the first gigs can be difficult and is essential to get your name known locally. Then the people that come & see you, that like you, will (hopefully) go to your online space & start downloading your songs – for a fee of course – and telling their mates.
And of course there's also Facebook. A great place for telling all your mates about your next gig(s). Free advertising, what more can you ask for. Ok it's a limited market at first, but of course that depends how many friends you have. And how many friends the rest of the band members have. and their friends, and so on…