So why do you think they are going under? A few reasons I can think of.

1. you don't need to record a live symphony orcestra anymore, you have one in your laptop

2. you don't need 2" tape and huge analog boards anymore to produce potential "hits".

3. you don't need the space and expense of a large studio and all the overhead costs it has

4. technology has allowed people to produce music in meger studios with little to no overhead expenses.

5. the talent is no longer out there like it was back in the day.

Just a few I can think of.