According to John Timmer, the best way for the record labels to fight piracy is to offer unlimited-download subscriptions:
The survey shows that users are ready to pay a monthly fee for the equivalent of what they can get via piracy: unlimited downloads of music that they permanently own. A full 85 percent of those surveyed said they’re willing to pay for this, and over half said they would stop pirating.
It used to be that physical distribution limited how much music you could practically have. Now, people carry thousands of tracks with them, running their own private radio stations. The article talks about unlimited downloads, but surely this isn’t necessary. A high limit, say 100 downloads a month, would satisfy the majority of music fans — even the pirates. Would you pay, for example, $25/month for up to 100 DRM-free iTunes or Amazon downloads?