Like print media, cinemas and taxi companies it seems like the record labels think they're special and somehow immune to the march of progress.

If Hollywood bled Netflix dry, people would still stream/watch movies at home, but none of that money would go to the content creators. Same with game studios and steam.

On paper, there's alternatives. In practice, I strongly prefer Spotify's UI, cross-platform apps (which are dying but still work for now) and social functions. So for me and many of my friends, it would also be back to mp3s (+ last.fm?) instead of a different streaming service.

This wouldn't be the first time one of the more user friendly streaming services have been taken down. Happened to Rdio, too.