But then Rubin starts going on about the subscription model being the industry's salvation.
That's the point in the article where it lost its credibility for me.
I think that the industry wants subscriptions so badly, because it's the only business model that allows them to stay in business.
As Fake Steve Jobs put it:
Here's the back story. The music companies are in a dying business, and they know it. Sure, they act all cool because they hang around with rock stars. But beneath all the glamour these guys are actually operating two very low-tech businesses. One is a form of loan-sharking: they put up money to make records, then force recording artists to pay the money back with exorbitant interest. The other business is distribution. They’ve got big warehouses and they control the shipment of little plastic boxes that happen to have music in them.
The guys running the labels are pretty stupid -- most are just dirtbags who started out as band managers or promoters -- but now at long last they are kinda sorta finally vaguely getting clued in to the fact that both parts of their business model are fucked. Their loan-sharking business is being eliminated by low-cost digital recording technology that lets people make an album for very little money. And by letting us build the online music store they've taken themselves out of the distribution business. In the days of vinyl and then CDs, the labels managed to control the value chain by having loads of retailers in a highly fragmented market, and playing them off each other. In the digital world they've got us. And that's it.