I mostly agree with him, but I think he mis-represented Free Culture. Good point on people being willing to pay for hardware and internet, but those are hard to get for free. Plus physical things have more perceived value than a file on your drive.
I'll admit I used to tape albums as a student, but have since spent thousands on music and concerts. Lately I've got into a few bands who sell their music via Bandcamp which mean they get most of the money.
People are getting used to getting stuff for free (once you have the hardware an connection). They can legally listen to all the music they want via various sites. Many probably use file sharing sites without even thinking about the legality.
I don't see that record companies have any special right to exist, any more than book printers, but those wanting to reach the mass market will probably keep using them.
We live in interesting times.