[discostu]

I'm not sure how many are avoiding the RIAA. I know some older artists have gotten sick of it (Jimmy Buffett is a good example), in the younger crowd non-RIAA companies seem to be functioning as kind of a minor league, bands are signing there and if they do well move up to RIAA. IMHO this is one of the major problems the RIAA companies need to solve, they're no longer taking risks on marginal artists like they used to. They used to make a lot of money signing bands like Yes and being suprised by their popularity, now a band like Yes could never get an RIAA contract, but they could get a non-RIAA contract so all that extra money from suprise successes are going to other companies (at which point the RIAA might be willing to sign them, like deciding to ride the horse after it's left the barn).

Of course all that being said we need to keep in mind that the RIAA still makes a large buttload of money every year. Even with sales off over 10% from peak they're still competing with movies and video games for the #1 entertainment earner spot. Don't be too hasty to play taps for the "old model", it might be taking on water but it's not playing Titanic... no matter what the RIAA says.

[visualops]

no longer taking risks on marginal artists like they used to

That's the total fallacy, there is no risk! The "marginal artist" is on the hook for several 100k. The music industry takes no risks, all expenses come out of the artists supposed earnings. A band can sell millions and still be broke. Have you ever seen a recording contract? The recording industry books make Enron look like a lemonade stand.

The reason a band may eventually have to get with a bigger label is strictly over distribution, hence the RIAA's major problem with file sharers- it isn't about the money, it's about control!