Digg's Kevin Rose. Photo by ThomasHawk.

I hold a few things to be self evident:

The "Shiny Disc" business model is faltering.
Undermined by digital distribution, entertainment companies who's operations were based around retailing physical copies of music are forced to find replacement streams of revenue.

System overwhelmed by product and demand.
The low cost of production and immediacy of publication have resulted in the traditional system being overwhelmed. Coupled with high demand for alternative means of promotion/distribution/retail, the environment is ripe for innovative models.

Existing filter/rating systems ineffective.
Because so much focus is dedicated to promoting so few products within key commercial media, a wide breadth of Western culture is denied access to these media systems. Traditional filters (A&R reps, critics) are overwhelmed and unable to function to their greatest degree. Further, resulting statistical compilations (i.e., Billboard charts) are artificially skewed, and unable to accomodate products outside a few commercial systems (SoundScan, etc). Results are often magnifications of momentary cultural fads.

Clear and persistent demand.
Music is so pervasive and ubiquitous as to practically be invisible. As more regions of the Earth become technologically enabled, markets for music will continue to grow and thrive. There is still plenty of room for new music.

Consumers are Participants.
The days of the passive music consumer - if they ever existed at all - are gone. The modern, internet savvy listener is also a participant, and they can make lasting emotional connections to the systems they're a part of.

So how can Digg save the music business?

By becoming the system.

A system like Digg provides all the necessary components to proxy as an alternative music industry.

• It's massive (and growing) user base is highly motivated to find new/interesting online media, is capable of efficiently combing the internet's vast archive of material, and can accomodate any Internet-connected system.
  
• Digg's rating methodology is ideal for quickly promoting phenomenal musical performances.
  
• Digg's transparency and open system provide an ideal environment for derivitave statistical compilation and analysis.

In other words, Digg provides a foundation for music fans to be participants instead of mere recipients. I'd like to see a Digg spinoff that was dedicated solely to discovering and promoting new/interesting/just plain awesome music on the internet.

Comments and feedback greatly appreciated. Thank you for reading.