At the Digital Music Forum East conference in New York this week, music industry professionals discussed album sales, digital rights management (DRM), the public's willingness to pirate music and the scary state of the industry in general. Ted Cohen, managing director of music consulting firm TAG Strategic, moderated the kick-off panel, The State of the Digital Union.

"We're running out of time," he said, according to CNet News. "We need to get money flowing from consumers and get them used to paying for music again."

DRM was the most hot-button issue that was addressed, as many criticized Apple's Steve Jobs for saying that all digital music should be sold without DRM, which would make it playable on any digital music player. Since Apple has maintained a stonghold on digital music sales by protecting music sold on iTunes with DRM, many called Jobs' plea "insincere" and a "red herring."

However, the panel members, which included Sony BMG SVP Thomas Gewecke and RealNetworks Europe GM Gabriel Levy, were divided about what the music industry should do about DRM. Most of the panelists said that some form of DRM is necessary, but Greg Scholl, CEO of independent label The Orchard, contends that DRM doesn't work.

"The idea that DRM gives us choice isn't right," he said. "The economics of the business are over for good and aren't ever going to be the way they were before."

Gewecke, meanwhile, defended major labels against the criticism that they are clueless about modern technology. He said that Sony BMG is working with technologists and retailers, and is constantly looking for solutions to some of the industry's problems. He also said that things aren't all gloom and doom in the music business.

"We routinely talk to companies about what's different," Gewecke said, according to CNet. "We're constantly looking for where value is being created in a business model. We are being flexible. There's still an evolution that has to happen. I say it's an optimistic time considering there's more music being listened to now than ever before. There's more opportunities to monetize the music. We want to be out there looking for new ideas and companies."

However, one audience member stood up and called out the major labels for being oblivious to real music. "Behind all of this bullsh*t is the actual music," said the man, according to Wired. Pointing at Gewecke, he continued, "The major labels have run so counter to everything human except for making money that you [the major labels] are the California that's going to drop into the sea." He predicted that music will split into a "two tiered system, where you [the major labels] can do Britney, and her hair, or her not hair, and everyone else can do the music."