Say good-bye to disc dependency

While they can no longer rely on sales of physical formats, the music industry is hardly out for the count. On the contrary, they are entering a brave new era, according to eMarketer.

CDs account for 55 percent of the music industry's estimated $60.7 billion revenue. Despite massive shortfalls in this arena, the music industry is expected to continue growing 2.19 percent annually with the increased adoption of the digital format.

Digital music is expected to reach only $14.8 billion in 2011, a mere fraction of the total industry.

Other revenue-building options are numerous, however. Live concerts see little threat from piracy, and licensing music for public performances, television, ads, films, and videogames remains lucrative.

Advertising, long a musical ally in the world of radio formatting, may prove a better friend to the industry than ever. Little "sell-out" stigma remains for musicians seeking to broaden exposure with a product promotion.

With high-profile relationships like those between U2 and Apple, Bob Dylan and Victoria's Secret, the union of brands and musicians is expected to increase.