The original model of the music business is top-down. A hierarchy where the central issue is distribution ( of product, of power, of money) The new, less familiar, environment is bottom up and the central issue is consumption ( access, utility, reach).
What kind of economic system can model this? What will the “above” look like?

The consumption model begins with an appreciation of the product as it is determined by the consumer ( not conceptualizing the product as it is manufactured). Music is consumed as experiential behaviour. Hearing music - as file, record, ring tone, soundtrack - collating, sharing, socializing these outputs, Seeing the show: live, live on screen, on tape, in video, film, or festival, Wearing the merchandise. Identification with expressed positions or values. Whatever the action is - it is the seamlessness of desire that matters. The current boundaries based on physical states (manufacture , venues, geography, genres) cannot accommodate the seamless state.

Systems (including individuals) that are able to create a total experience are those that allow multiple entry points into their experiential realm. In these “open” systems there is a multitude of choices to be personalized. In the example of a band and their fans there is a co-creation of a unique value chain.

The challenge to be solved is how to aggregate the many experiences that currently define music and to provide the tools that allow us to mine, and expand, our desires. (This is the money trail.)
Do you want the track, the merch, the seat, the show, the season pass, the catalogue, the interview, the documentary, the lyrics, the set-list, the sheet music, the virtual backstage pass, the meet and greet, the private date, the video, the artwork, the cd, the disc, the ring tone, the car horn, the performance rights. Do you want to invest in this demo? Sponsor the album, promote the tour? Do you want to sell tickets? Street-team? Subscribe, purchase, trade, barter? Whatever you desire.

The investment to be re-directed it to easing the user experience, refining access, utility and reach and allowing multiple, transparent methods of payment for the things we want.

In my experience implementing and managing large-scale socio-technical work systems, a technical system is considered to have reached failure when the work-arounds become so numerous as to constitute redundancy. Furthermore - the workarounds are not the new system - however they are a diagnostic and predictive.
It may be helpful to consider social networking and file-sharing, stub-hub, etc. as massive workarounds, rather than new (uneconomic) systems.

“These are the pragmatics of innovation: Until a previous possibility has come into existence, an adjacent possibility couldn’t exist.

The questions that organizations must ask is, What are the adjacent
possibilities within an industry that allow for the creation of
something new ?
In highly competitive markets this is vital
information, because once an adjacent possibility becomes possible, it
will occur. Someone will discover it. There’s no way to predict when,
but it will happen.”
Howard Sherman & Ron Schultz, Open Boundaries. A New Way of
Thinking.