RIAA (Recording Industry Association of America) chairman Mitch Bainwol says the music industry has 5 reasons for optimism:

1. The product, music, remains as popular as ever.
2. Long live the album. "The album’s demise is exaggerated."
3. But it’s more than just the album. "The modern music company is an increasingly diversified, full-service entertainment firm deriving revenues from a variety of different streams."
4. Record labels make or break the day.  
5. Great music.

I think the most important point is #5: That is making great music. I have attended numerous conferences including Midem, Musexpo, Popkomm, SXSW, Billboard Music & Money Symposium, Digital Hollywood, Leadership Music Digital Summit, Digital Music Forum amongst others. My excitement about music has always been to find new exciting acts, the next Beatles or Led Zeppelin or the next Jeff Buckley or Chris Cornell.

I do believe the music industry will have to realize that #5 is the most significant point. In the end it is all about making great music. Didn't the Beatles sell 2.25 million CDs in 5 days? Decades later, the Beatles seem to attract buyers and video game enthusiasts. Where are today's Beatles?

My advice to the majors: Develop, develop, develop. Get some great music out. And I mean great music. Something that will give me goose bumps. I got the goose bumps the first time I heard Eddie Vedder sing. Then listening to Chris Cornell on BadMotorFinger. How about Smells Like Teen Spirit by Nirvana or the late Layne Staley singing the Alice in Chains song Would? Yes, that was the grunge era. Why can't we replicate something like that today? It does not neccesarily need to be grunge or rock. Take U2 for example: The Joshua Tree, Rattle & Hum, Achtung Baby. Those were brilliant albums.

My question is where is the great music from brand new acts? If someone asked me to pay $100 for the equivalent to a Michael Jackson "Bad" album I would pay. I would say loads of people would pay too. Why on earth are the Beatles selling decades later? How on earth are they outselling everyone? The answer is: great music. Music that touches people. If you have great music, the money will follow. With all the new exciting ways of monetizing, I strongly believe the missing component is great music, a great act that kicks butt when they play live, as well as harnessing multiple revenue streams, not just relying on the CD.

Mitch Bainwol mentions great music that is upcoming from the likes of Alicia Keys, Nelly Furtado, Pearl Jam, Norah Jones, Bon Jovi, KISS, Tim McGraw, Shakira, Rod Stewart and Carrie Underwood. My question is: "Which of these bands or artists are a product of the last 1-2 years? Where is the future of the music industry?"

The future of the music industry is quite simple: it's the music itself.