The music industry can't disappear completely. While it is experiencing lower sales, as commentator Strumpf said, other industries, like car sales, are experiencing the same problem. Even in the 1980s the music industry had a decline in sales that it survived. I also agree with Dannen that it was a business failure on the part of the record companies to not jump onto the mp3 bandwagon. "The industry could have adopted and embraced MP3 as the new dominant format, had it understood why it was unstoppable," he said. And I think he's entirely right. If the companies had sold mp3s at the beginning of their popularity, illegal means might not have taken off as quickly. Gottlieb suggested the option of free, but ad-supported mp3 content and the selling of higher quality digital products.
They've survived changing technology before. The marketability of music hasn't declined. It is a matter of finding a new way to do so, which is probably only a matter of time at this point.