Digital Music Sales Grow + Overall Music Sales Shrink = A Padded Industry?

PaidContent reports on a Jupiterresearch forecast that while revenue from digital music consumption will grow over the next five years, it won’t grow fast enough to supplant the overall shrinking in the industry.

It begs the question: was the industry overall inefficient? Is this a natural “correction”?

Or is there a business model for the sale and distribution of digital music that hasn’t been developed yet? Or does the current one (dominated by iTunes) need tweaking? Perhaps DRM-free is the answer?