The Album is Dead

I saw this interview with Billy Corgan of the Smashing Pumpkins and this quote really stuck out to me:

Tribune: So “Zeitgeist” was the last album?

Corgan: We’re done with that. There is no point. People don’t even listen to it all. They put it on their iPod, they drag over the two singles, and skip over the rest. The listening patterns have changed, so why are we killing ourselves to do albums, to create balance, and do the arty track to set up the single? It’s done...Our primary function now is to be a singles band, that drives Pumpkins Inc. through singles. We’ll still be creative, but in a different form. We won’t do shows like this anymore, where we try to draw a good crowd and balance the past with the present. We’ll go small and do exactly what we want to do and stop playing catalogue. We’ll be like a new band that can’t rely on old gimmicks. I’m not stupid. I want people to feel good about what we do. What we weren’t getting [from playing a more balanced show with older songs] was excitement. We’re in the polarizing business. We don’t want a pat on the back: Good to have you back. We want a reaction, even if it’s a negative reaction.

I have heard before that the album is dead, but I keep seeing bands and musicians continue to release albums. This is the first band that I've heard say that they're just not going to make albums anymore and just make singles. Will that work financially for them?

Personally, I'm a big fan of the album as a vehicle for music delivery - even with iTunes and my large mp3 collection, I still usually listen to an entire album at a time. Oh, this brave new world.