So basically MP3 music is over priced.

A problem I think described by my economics lecturer as one of price discrimination - how can you charge in a market different prices in a market to different groups based on their utility assessment of the good. Essentially there are a number of different segments out there with different supply and demand curves.

One group could be the market that missed out on the Napster generation who seem quite happy to spend over CD level prices on MP3 music, because they see it as more convenient to carry with them and have never questioned just how cheaply MP3 music can be distributed.

Then there is another segment that experienced services like Napster and similar, which gave access to almost all recorded music including some genre's and artists you would never otherwise pick up because the marginal cost of hearing a different track or album to your regular favourites is zero. For this group there are high fidelity streaming services that include the ability to store your music offline if needed and the price compared to CDs if you "consume" a lot of a wide range of music is much lower. (and fortunately for me no artist I care about has boycotted any streaming service yet)

And another group where physical ownership is important - like keeping favourite books on a bookshelf to tell a story of who you are and what you are interested in.

There is something for everyone basically. Gotta love the free market.