Last month, EMI Thailand, one of the four largest music labels along with SONY-BMG, Warner, and Universal, closed its CD and DVD manufacturing operation in Thailand. This is not good news for the music entertainment industry in Thailand, as not only does it reflect a drastic change of lifestyle of music consumers, but it also demonstrates without a doubt that copyright piracy remains a big problem. EMI reported dramatic sales reductions because it could not compete with the low prices of pirated CDs and DVDs. The International Intellectual Property Alliance (IIPA) says that around 20 local Thai independent labels were forced out of business in 2006. Is Thailand going to witness more closures in the music industry? This article offers some solutions to the current challenges.