Here we go again, enter Jogli.com, a Israel based aggregator of music video content (over 12 million songs).
CEO David Schwartz sums the debate up, as follows:

Our position is simple – all sides should do their best to solve the issue: Project Playlist should either pay royalties or find creative ways to find legal content around the web. It is possible although it is hard; once they do that – MySpace and Facebook should decease the blocking – as this blocking hurts their users eventually.
But – most importantly – content owners should be flexible in their negotiations with various web sites – as an example – Warner canceled their agreement with YouTube – why? In this time of financial crisis demanding more money is absurd, and, the users’ community uploaded all the popular music to Youtube hours after it being removed anyways, so nothing really changed – the offering in Jogli, as an example, was hardly effected at all. Trying to remove the sound is yet another futile effort as users will upload replacements.

He couldn’t be more right. Its not his place to solve the issue. He’s the aggregator of content. Yet the major labels keep trying to find a way to get paid for each “spin”.
The model has changed. The industry can’t be monetized by decade old methodology. Something has to give.

What do you think the solution is?  Is there a model that works?