. >> look at lindsay sterling. she plays the violin. imagine her showing up in one of the big music studios in new york saying hey, please, can i get a record deal? i'm really good at the violin. >> but she did. she was turned down. >> that's right. so all of a sudden she becomes a youtube sensation. fills stadiums now. you can't argue with that. that is when the crowd decides. >> i think that people are very smart. i think they're very intuitive and they pick up on when you love what you're doing, they can see it. >> this direct connection to the audience threatened the music industry. >> the record industry's traditional model has been selling pieces of plastic that contain all the music. and hundreds and hundreds of millions of records were being sold all the way up toto the britney spears and backstreet boys era and people were making money hand over fist. >> not anymore. >> not anymore. in the late '90s, suddenly the internet kicks in. >> how many mp3s you have on your computer? >> about 6,000 or 7,000. >> napster came in and allow