How to destroy the music business? No, just the record companies.
The Internet is very scary to record companies, just like tape recorders were in the 70's. What record companies have either failed to figure out, or know and are really hoping we haven't noticed, is that there are two sets of monies associated with every sale. A physical element and a copyright element. The record companies used to love format changes. LP's, 8-tracks, cassettes, CD's and now music-DVDs that they can to sell to us the albums we already have, all over again.
A large chunk of us would buy the album and record it onto cassette so we could listen to it in the car. Was it really theft? I owned a licence to listen to the music, and I owned a bit of plastic, and the record companies tied this together so well we had no choice but to go with them, and be turned into pirates because our cassette recording process was better than theirs (Metal tapes, 1:1 speed, etc).
Now, when I buy a bit of software I am allowed to make a certain number of backup copies, I can usually get hold of the software again if I lose the installer. I have paid for a license to use the software, and the media it came on is pretty much irrelevant, other than a useful bit of anti-piracy hardware.
Having spoken to Pete Jenner in the past (and he does have a pretty good track record, so don't assume he is the dummy portrayed in the article), he does understand the music industry far better than the writer of the article. The record companies are but the tip of the iceberg. Many bands don't actually make any money from record sales, not least because they get tricked into accepting large advances and everything they do from then on has some sort of record company charge associated with it, stuff that the band assume the record is paying for, but in fact is being rebilled.
So many bands try to make money from touring. This used to be a good little earner in the 80's, when bands could spend 2 months touring the UK, going to places that have long since been turned into bingo halls. The big bands (Stones, Floyd, etc) make a lot of money out of it, and the Brits do it best. Our concert touring and theatre industry is the best in the world. ALL (yes I mean all. Why do you think there are so many trucks parked outside the back door of the venue?) that stuff you see at concerts will be in the back of a truck by the end of the night, and in most cases, being set up somewhere else the next morning.
Looking at this from a marketing point of view, if a band's USP is its live performances, you release your songs for free on the Internet, build up a fan base (if you are good enough, of course) and make money by playing live. You can't get the same live vibe from an mp3 or an mpeg4, or even a 70mm cinema screen, so it can't get pirated.
Oh wait, this means only talented musicians will make it. Can't have that. It would be the little boy pointing at the Emperor's new clothes all over again...
No Billy Bragg icon? Sorry Pete!