Winners = Small Bands

Given the widespread prevalence of Apple's iTunes, I think that small bands that were previously ignored by the record industry will end up as big winners. High quality production software is becoming more and more available, leading to greater access to the mass of bands. Therefore, bands will no longer have to rely on record labels to produce and distribute their music, as iTunes and other such services provide an excellent distribution network. I don't think that the record lables will fold, however, as the American public still craves packaged, bubble gum like pop music (witness the fanaticism around American idol).