Joi Ito on stage, starts of good. Passionate speaker.
"Traffic is the currency of the internet."
Before, you had to interact with your fanbase through a small box inbetween thousands of others. Now you can do much more, get in real contact with fans who will pay for this. So give away the music to the masses as a form of publicity, and charge more to those people prepared to pay for it (e.g. sell them a signed DVD box like Nine Inch Nails did).
How to make sharing profitable:
Sharing is something young people want to do, they are the fans stupid! Don't sue them, help them to share, provide them with tools to share.
Sharing is not people stealing your content, it's people marketing your content.
By locking up content, you will lose young people's attention to e.g. video games.