Mark Cuban, owner of the Mavs and general tech rich guy, has a great entry in his weblog about the insanity of the music industry. He is spot on with this: trying to protect music perfectly will fail. I know plenty of people who subscribe to one of the all-you-can-listen-to channels and rip the music off of the feeds (sure it takes real-time to do, but then you can share with your friends). If they drop the price of a CDs worth of music to $3 and made it easy to find on line, much of the piracy would disappear because it just wouldn't be worth it for people with jobs.
Also, and maybe more importantly, I'm probably not unique in that I tend to spend more on music once I get started buying it (I find something I like which leads to something I like which leads to something I like, etc.) However, the barriers to buying new music are too high at $10-15 per CD. What if I hate it? So, I would spend much more if music were cheaper than I will at $10-15 per CD. This is called price elasticity and it is an econ 101 subject - why don't the record companies get this?