As we see it, the desire to physically own music began to dwindle with widespread piracy, which more than anything, has separated true music consumers from the casual ones. Yes, a large chunk of people no longer spend money on pre-recorded music, but we’d venture that the vast majority of them are the marketplace descendants of those who in the ‘90s liked music well enough but owned 10 CDs or less and mostly listened to whatever was on the radio. Of course, you factor in a 21st century culture of not purchasing physical music and the number grows significantly, but those are, arguably, not true music fans; not as we would define them in the past, anyway. The consumers the biz has lost are the casual consumers, not the folks who own the catalog and the bootlegs, have seen the artist live half a dozen times, and own three different tour t-shirts.
So, who’s left? Those who are gladly willing to pay for music. But the marketplace has made it difficult for them with the number of shops dropping like flies. And shopping at Amazon just ain't the same thing. (By the way, this is why if you open a brick and mortar record store that sells vinyl, and jazz, classical and “heritage” artists in any format, you’ll probably do well if your rent is reasonable, ‘cause those consumers tend not to be attracted to illegal downloading. We could be wrong, tho.)