Techdirt says it best about this bit: Labels eye online social networks as retailers (pdf)

Do the record labels really not realize how much they’ve pissed off their best customers for the last decade? It would appear so, because they’re now hoping that the kids they’ve alienated for all these years will become shills for them on MySpace and other social networks, pushing all their friends to buy music as well. That might have worked years ago, but these days it seems like plenty of kids have been so turned off by buying music from record labels that treat them like criminals first, that it seems like an uphill road to convince them to not just start buying music, but shilling for the record labels as well.