What's needed is a change in mentality and the functioning of the music industry. NiN has adopted what I think is the future of music. Music is given away for free and fans end up buying the merchandise, special collectors box sets and of course pay to go to concerts.
This will allow independent artists to get known (they distribute their music online) and find a following that in turn leads to concert and merchandise revenue.
If you can't beat the pirates, put them out of business by giving away the music yourself.
These days, record labels have become nothing more than promoters. It is relatively easy to rent a studio, record your music and put it together with Logic Pro. Package it up and begin distributing it online. Artists make most of their money on concerts anyway.