South by Southwest may be a big music industry party, but it can’t obscure the fact that the record business remains in serious trouble. “Major labels have slashed employee and artist rosters. Perhaps most critically, the big record companies have largely failed to embrace the digital revolution, putting severe restrictions on their artists’ catalogs. In the process they alienated customers and drove away business.” But the indies who flock to SXSW may provide an example for the big boys to follow out of the digital wilderness.