Here's an excellent article. The music industry has been in shambles—and they often blame their customers! (RIAA vs. deceased grandma)
In contrast, one of the reasons Apple does so well in the music market is because Apple understands its market much better—rather than fight it. People generally want to pick and choose music they enjoy, not slim pickings among preprogrammed junk and overpriced CDs. People just want the music they want, when they want it, and how they want it.
The music industry is stuck in the past on this. In the past, music only had a small distribution point (mainly records, before recordable cassettes came out). And with this small distribution point, you can funnel the masses through this for a guaranteed amount of money. Add some new funnels, and the masses become too diverse for behemoth music companies to manage. So every move they make is, well, clumsy.