Education. Health care. Music. Three industries within which I would never try a startup due to such twisted incentives and resistance. Much respect to those who do try even when they know the odds.
The way I see it: Education is seeing growth in charter schools, MOOCs, iTunes U, etc. Healthcare is changing under Obamacare[1]. Music is now brought to you by Rdio and Spotify.
[1]: That is, the new cooperatives and companies being formed to compete on the new state healthcare exchanges. "Health Plan Cost for New Yorkers Set to Fall 50%" (NYT): http://www.nytimes.com/2013/07/17/health/health-plan-cost-fo...
Family runs a successful education company.
Now I'm doing a healthcare start-up.
That aside, I think most industries have significant amount of twisted incentives and resistance. The challenge to building a successful company is finding an opening with a narrow problem or stakeholders.
I agree I'd never do music (again).
I guess the downsides of a music start-up is when you get popular and then it gets costly?