(This article originally appeared on ArtistsHouseMusic.org.)

Now that the holidays are over, the new iPod’s unwrapped and all the family’s mp3 collections have been combined and shared now’s not the time to focus on RIAA lawsuits, slumping record sales, or whether downloading a torrent of “In Rainbows” from Radiohead from The Pirate Bay for free rather than from their site for free constitutes copyright infringement. Here are 5 things the music business can look forward to in 2008 that might change their fortunes for the better.

1. Video games to the rescue

Games like “Guitar Hero III” and “Rock Band” are providing new mediums for both exposure and commerce to new and established artists. “Guitar Hero III” made $115 million dollars in its first week at retail in October. While figures for “Rock Band” aren’t yet available, it was one of the breakout gifts for Christmas 2007. Both “Guitar Hero III” and “Rock Band” offer players the ability to buy new music tracks to play online. This is good news for record labels because song sales have jumped for all songs that shipped with the games. “Rock Band” is the first game to have a weekly release schedule for new music, and the first to offer full albums for download. Look for revenue from downloadable content to increase and for further exploration of the rhythm-music genre of video games. Can Big Band Hero be far behind?

2. Participatory culture has arrived

It showed up in 2003, got presidential with the CNN/YouTube debates in 2007 and in 2008 the first applications to manage all of your social identities will show up online. Why is this good for music? Because people share music, people bond through music, and because word of mouth has never been faster. Half of YouTube’s most watched videos in 2007 were music videos for major label artists. Many major label artists have MySpace pages with hundreds of thousands of fans. The major labels have been quietly using Internet marketing techniques for a decade now. Their increased desperation in 2008 will lead to a partial abandonment of DRM, and more music sharing will ensue. In turn, this will spur music sales. The circle of life is complete.

3. David Byrne has a survival strategy

Traditional record sales are through the floor, but like making money in a down economy, David Byrne sees six survival strategies for emerging artists that will allow them to have a career in the era of participatory culture ranging from little control to total control. Read the article. There’s wisdom in the words.

4. Capital and connections count

Despite the success of Radiohead’s “In Rainbows”, the digital launch of Trent Reznor endorsed Saul Williams’ album “NiggyTardust”, and ever more barbarians at the major record label gates; money and connections both still mean a thing. It’s those connections that get Beyonce in a DirectTV commercial and half time Superbowl performances for Tom Petty. Tom is a vocal opponent of corporate sponsorship of music events. I guess football doesn’t count. And you know why it doesn’t count? Because the connections that got him the gig are important, that’s why. If you’re a country artist, do you want to fight for respect on MySpace or be signed to Rupert Murdoch’s country label*. You won’t change your mind in 2008.

5. Making music has never been cheaper

It’s time to close down the Times Square location and move back to your Mom’s house. Music can be made on a laptop and distributed online for next to no cost. When there’s next to no cost put into it (save labor), profitability should be just around the corner. Right?

* I know he doesn’t have a country label. I said that for effect.

Bonus rumor: Have you heard the one about Apple and Jay-Z forming a record label ?