Record sales are down, illegal file sharing persists and a whole generation is getting used to enjoying music for free.
But Daniel Ek[traitor!], the man behind Spotify, the world's fastest growing online music service, is convinced that fans will still pay for songs they love if they are packaged in the right way.
In one of his first interviews since the British launch in February of the "online jukebox" which allows users to listen to songs instantly for free in return for occasional adverts, Ek outlined a new blueprint for the music industry.
Ek is confident that the future is bright if the music industry seizes the digital initiative. "If you truly connect and empower your fan base, people will pay for music. Perhaps that revenue won't come primarily from selling records, but ad-supported music services, subscription music, downloads, merchandise and live shows as well as CD sales are all going to make money for labels and artists," he told the Guardian.
Today Brighton's new music festival and convention The Great Escape - think South by Southwest by the seaside - announced that Ek will share a stage with Patrick Walker, director of video partnerships at YouTube/Google at the event next month.
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