I think fighting piracy would require much effort and the music industry would have a hard time on it. With the web now proving to be a good avenue for fast, easy and free distribution of mp3s, music lovers are likely to be seen on sites such as Limewire and BitTorrent rather in Tower Records or other record bars.
I like your idea on the use of mainstream media. Although ideally, these are utilized only by big multi-national corporations that are already established, startups can also employ them without needing big sums of money. Press releases which can be just submitted to newspaper publishers can come in cheap and handy. The idea for online advertising can also prove more effective than roving trucks, billboards and other forms of terrestrial advertising.