Self released music.
This is the route I am struggling with - (quick plug http://www.junklight.com). I guess that's the way we need to go - play live to get fans and use the internet as distribution. I haven't had time to build much of a fan base yet but its definitely doable (mind you my financial goals are low - it only has to pay for my studio gear). There is no reason why I bunch of like minded people couldn't set up a virtual label... As long as some of the more ridiculous RIAA laws don't get passed - the digitally secure computer with rights management built in for example. There is hope - I have seen a couple of things recently that make me think that *if* US congress try to push this idea then People will move to Linux etc. rather than letting Microsft take over their lives - M$ know this and seem to be backing away from the idea. Heres hoping - without M$ support it will never happen. cheers mark