Ages ago, I predicted that recordings from live concerts would be an important source of digital music online. I belive Daniel Berlinger had some issues with that, arguing that recording live events was costly too. It seems that for some kind of music, a good spot and DAT recorder gets high-enough quality sound and these recordings are being distributed online.
Ironically, the biggest impediment to this type of system gaining adoption is the RIAA's failure to get DRM technology "invasively and pervasively" deployed. One of the current proposals --a tax on ISP fees to make up for online file trading -- gives us the worst of all worlds because it 1) reinforces the RIAA monopoly (they now get to tax everyone with a broadband connection!) and 2) blocks alternative sources of music (because Britney Spears mp3s are still available for free).
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