I disagree with his outlook on the music biz. I think that recorded music does have a value. Although there is a small cost to produce it these days every musician dreams of making money off of it. No musician enjoys giving their music up for free. They assume that it'll pay off in the long run(whether that be buying tracks on itunes, getting a cd or a tshirt at their show). Just because the current model for selling music isn't working and piracy is a popular alternative doesn't make music worth nothing.
Also, any band already relies on live concerts for their means of money. This is nothing new. What is happening is that major labels are getting a bigger piece of the pie when it comes to merchandise(which used to go straight to the band). I just think a new means of selling music must be created that benefits all parties.