With all due respect to Bruce Houghton at Hypebot and Andrew Dubber at New Music Strategies, the dream is over. It’s time to wake up and smell the coffee.

Bruce’s post “Why Are We Still Debating Free?” infuriated me. Sure, Chris Anderson’s notion of “freemium” sounds great for any website looking to get users to come back often to consume content, but look at the body count piling up in Music 2.0 and tell me how that looks. It’s not truly “freemium” because they don’t own the good in question to begin with. Andrew Dubber incorrectly states that “Yes, Google gives their consumer-facing stuff away, and they are a massively successful company.” Google owns search on the web. They’re not giving that away. They have a near monopoly on the most potent revenue stream on the web!

Those of us who work very hard on the editorial side, especially on the web, know just how difficult it is to get people excited about music these days. There are times you can’t give the stuff away! For all the talk about bands as brands and what-not, I can say honestly that music may have never been a smaller part of the overall entertainment picture than it is today. Sure, music may be ubiquitous in commercials, on our iPods, and wherever else it lives, but that doesn’t mean people are actively seeking it out in any meaningful way.

The music business has changed and so have music consumers. Now that music can be had for next to nothing, consumers are willing to accept whatever low-quality product is available online and see no incentive to upgrade. The same is true in any other business that’s been affected by the Internet. It pains me to say it, but there may be no future whatsoever for music as a business in its own right. The only thing these businesses can really sell are t-shirts! How can a strategy around “freemium” work when consumers are already acquiring the good for free or nearly free?

Part of my music crusade has been to say how impactful events like this are for the music industry. There’s a great comment in the Idolator post on Blender’s closing from the friend of an anonymous flack who doesn’t know which outlets will be left to pitch by year’s end. It’s that bad. That outlook, coupled with the industry’s retreat from promotion in the name of revenue, viz. videos holed up on Youtube with no embedding privileges and the like, music will soon be harder to find than bin Laden!

Heck, even the thing people seem to enjoy most about music online is changing. Last.fm announced this week that they’ll be changing their streaming policies in many parts of the world, setting off a tidal wave of outrage. Powerful music search engine Seeqpod will begin charging developers for its data, too. Ominous noises are coming out of the Imeem camp, too, no matter what they’re telling Michael Arrington at Techcrunch.

Those of us who foresaw the end of Music 2.0 can only shake our heads. Chris Anderson’s “freemium” dream is over. The blue sky mines are collapsing around our ears.

What’s ahead? No one knows. I’m talking to my friend Jason Herskowitz almost daily about the future of music on the web, especially around music discovery. He’s been working on some cool stuff lately, most recently Playdar, an idea I urge you to check out. Nevertheless, he fears that Darknet will soon replace anything remotely legitimate for content sharing online. It’s a frightening proposition for rights holders who have any interest in protecting their properties in this brave new world, and equally scary for those of us who care about music as part of our cultural fabric.