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Confusion, frustration and paranoia were apparent and so was excitement about digital media. The industry has reached the point where "physical" music is in decline, but the market has been struggling to cash in on digital music.

The industry is no longer a kid, nor is it a grown-up in the digital world. Some at the forum were quick to blame the decline in sales on piracy, while others believe that the majority of music on digital music players comes from users' own CD collections or legal downloads. No conclusion was made but there was agreement that the industry must adapt. But how?

For three years, the forum has served to discuss such matters in the region. This year it drew speakers such as Paul McGuinness from Principle Management Co, who manages U2, and Terry McBride, CEO of Network Music Group, manager of Avril Lavigne. The forum attracted some 700 delegates representing artists, music labels, Internet service providers (ISPs), game service providers and mobile-phone makers. They discussed just about everything that matters to music.

In his keynote speech, McGuinness raised concerns about the future of music and questioned whether artists would still be able to produce quality work when digital music is free of charge. He urged all parties, including ISPs, to do justice to music creators. He fears for the future of artists as they seem to be the most vulnerable group in the market.

The good news is that everyone agrees music is not dead. Ian Stewart, senior vice president for Viacom Brand Solution and MTV Networks International, said the MTV 2008 survey found that 85 per cent of young Asians like music, and music is the most popular Internet download. The bad news is that 61 per cent of songs are downloaded without paying.

Interestingly, 73 per cent of young Asians say they want their phone to be their main music device. The survey may not match the desire of record labels but it reaffirms the belief that there must be a path to the digital world. Nokia has offered music-playing devices since 1997. "It's a significant move. We don't have a specific target but we know this can be a growth area," said Tero Ojanpera, executive vice president of Nokia.

For Nokia, the meaning of getting connected has gone beyond making a phone call or sending a message now that consumers want to share experiences and connect with their favourite artists. Thai Rock band Slur, part of Nokia's Independent Artists Club, performed in Hong Kong during the event along with three other Asian bands. "We just came back from a tour in Germany because someone spotted us on MySpace. Social networking is good for artists," said drummer, Thitiphan Anawatchapong.

McBride says the secret of Lavigne's success in Asia is because she listens to the fans and tries to learn what they really want. Easier said than done, but figures don't lie. Forty per cent of the artist's intellectual property business comes from Asia, according to McBride. That is the result of what he called an "authentic" relationship with fans. Avril's single "Girlfriend" was dubbed into 12 languages. Her connection to fans is based on embracing the digital world without fear of losing business. So while the industry is confused over who's going to pay whom and how licensing should be handled, what kind of business model should be adopted? Some, like McBride and Slur, realise that digital media is not the bad guy, after all. To them, it means opportunity, not threat.

Music doesn't stand to lose anything either in the case of game providers. Charles Huang, co-founder of RedOctane, which produces the hit game "Guitar Hero", told delegates that games also contribute to the growth of the music industry. His company's research shows sales of CDs of songs in the game grew by fourfold after just a month of "Guitar Hero's" release.

The Asian digital music business is still young, but worth around Bt3.3 billion. Its growth patterns may not look identical to the "physical" music market. (The CD may be old school but it is still the preferred format for many fans.)

Perhaps the music industry needs to overcome its fear and stop playing the blame game. It is time to go back to fans and give them what they want without worrying how, where and when they will listen to music. They will find their favourite artists digitally or physically. It doesn't really matter; it is the music that matters most.