That headline quote is from NBC Universal's Jeff Zucker and appears in an article about Atlantic Records in today's NY Times. The article talks about how Atlantic is apparently the first record label to report that more than half their revenue comes from digital products. Unfortunately though, as Zucker's quote alludes to, even if a player or two manage to get a larger slice of the pie, the pie itself is shrinking.
That phenomenon isn't unique to the music business. I believe the same trend will appear (and in many respects already has) in other industries. Think newspapers, magazines, and...dare I say...book publishing. Experimenting with a variety of digital distribution services is vital, but not enough. It's equally important to think about driving new revenue streams that may not be directly tied to the original content itself (e.g., sponsorships, partnerships, etc.)
Zucker's right that the pie will be smaller, but only if we limit ourselves to applying yesterday's solutions to tomorrow's challenges.