It's extremely profitable, but that does not mean it's large. IBM made $10.4 billion USD it's got 386,558 people which is a large company, but the recording industry is significantly smaller than that.
PS: Your iPod is not part of the recording industry, the local band that's waiting for their break is not part of the recording industry even though they would like to be. The recording industry is focused on promoting and selling music and while they make a lot of money they don't really use vary many people.
"The total annual net income from members of the RIAA is reported to be $11.5 billion" -- RIAA - Wikipedia (http://en.wikipedia.org/w/index.php?title=Recording_Industry...)
Wrong.