The music industry has been gaining ground in their attempts of making up for the loss of interest in full albums and physical CDs from music fans by embracing the digital world. However, they're a long way from making the profits they once did in the industry's heyday.

As more and more music fans transition over to buying from digital retailers such as iTunes, labels are stressing, to their artists, the need to become actively involved in engaging their fanbase, via the use of social networking.

The folks over at CNET, a major technology publication, ran a piece last week about how labels feel about their artists' embracing the use of sites like Facebook and Twitter. While they encourage it, some recording artists still refuse to take advantage, or jump on the bandwagon, which baffles execs.

"I was shocked to find out how many twenty-somethings aren't interested in social networking," Cameo Carlson, Universal Motown Republic Group executive, told CNET.

Carlson said many of their artists rather let their music connect with fans, rather than selling themselves, digitally. But, she says in the age of computers and the advances in technology, acts must connect with their fans to compete.

For some time now, signing to a record label isn't the last step in becoming a star. Artists, these days, have to put in their own leg work before a label even gives them a release date. The days of signing to a label, and letting them do all the marketing and promoting are long gone.

Daniel Glass, who founded and runs the indie label Glassnote, said that most of his acts get the importance of social networking, but some have a hard time accepting it.

"We need acts to be involved," Glass said. "When promoting a band, touring is still most important, but after that comes social networking."

Many artists are on Twitter and Facebook today, giving fans an inside look into their everyday lives every step of the way.