"How many young people want to be like Steve Jobs and think that Apple is cool? How many want to be like Edgar Bronfman and dig Warners?"
Pretty succinct words with an obvious answer, I'd say.
In a related post Jonh goes over some of the numbers showing how only 3% of the music on iPods is bought from the iTunes Store, and alludes to something that must be giving Bronfman and the heads of the other big music studios sleepless nights. Despite being the undeniable giant of online music sales, Apple would probably sell near as dammit the same number of iPods if they shutdown the iTunes Store, as they do now.
The fact that iPods sells strongly in countries outside of the handful of North American, European and Australasian countries with access to the iTunes Store graphically illustrate that the labels need Steve (pbuh), Apple and the iPod a whole heap more than they are willing to acknowledge.