The emergence of the digital download has damaged the music industry in a big way. Millions of songs are being downloaded illegaly worldwide. I do not think it has signalled the end of the music industry but it has affected it. Some artists may not make as much music as they would have done before the emergence of the digital download as people can get it for free at the touch of a button without leaving the house. iTunes reported it had sold its tenth billion song in february which just shows how the digital download is beneficial still to the music business regardless of illegal downloads.
However, maybe the emergence of the digital download system is just a good way to promote the music industry. This can be seen through the release of Radiohead's Kid A which was illegally downloaded millions of times before its official release on Napster. When it was released, it went no. 1 in the US, UK, Ireland, France, New Zealand and Canada. This is an indication that illegal digital downloads can benefit record sales and the music industry. Thom Yorke even stated from Radiohead "it encourages enthusiasm for music in a way that the music industry has long forgotten to do".
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Some good stuff here, I particularly like the Thom Yorke quote.
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