Another effect on the industry is that people can now unbundle their purchases. This means that they can purchase a single song from an album if they wanted to (e.g. iTunes). We now have the capability to purchase one episode from a TV series if we wanted to.
With the emergence of the the digital world, fans and musicians are closer than ever. There has always been a connection between people through music, but it's even closer now because sharing music and culture is easier than ever. Musicians can even connect through social media, as many fans have taken advantage of sites like Twitter and Facebook, and even Snapchat.
The music industry is on the verge of evolution. Music will never die, it will just keep changing with the times as it always has done.