Aren't human beings flexible enough to thrive anywhere on earth?
Yet, some humans choose to die rather than adapt.
The labels don't want to deal with the changing business. So they rather die.
I'm serious. :)
I personally would rather pay a monthly fee than pay for each individual song or cd. I also want the ability to do what I want with the music. I don't want to have to work to get music on an mp3 player or worry about whether I'm going to randomly lose access to songs in library, which has happened with Ruckus.
Chances are, if you run a major music rights company, you get paid a large sum of money and the financial incentives are structured in such a way that it's in your best interest to simply keep the ship sailing rather than make any drastic changes. Why take risks when you can keep getting your 7 figure check? If you tried to stop the bleeding all at once, you'd most likely be shown the door.