He did however foresee this eventuality, see the following, from "The Real Frank Zappa Book" :
We propose to acquire the rights to digitally duplicate and store THE BEST of every record company's difficult-to-move Quality Catalog Items [Q.C.I.], store them in a central processing location, and have them accessible by phone or cable TV, directly patchable into the user's home taping appliances, with the option of direct digital-to-digital transfer to F-1 (SONY consumer level digital tape encoder), Beta Hi-Fi, or ordinary analog cassette (requiring the installation of a rentable D-A converter in the phone itself . . . the main chip is about $12).
All accounting for royalty payments, billing to the customer, etc. would be automatic, built into the initial software for the system.
The consumer has the option of subscribing to one or more Interest Categories, charged at a monthly rate, without regard for the quantity of music he or she decides to tape.
Providing material in such quantity at a reduced cost could actually diminish the desire to duplicate and store it, since it would be available any time day or night.
Monthly listings could be provided by catalog, reducing the on-line storage requirements of the computer. The entire service would be accessed by phone, even if the local reception is via TV cable.
The advantage of the TV cable is: on those channels where nothing ever seems to happen (there's about 70 of them in L.A.), a visualization of the original cover art, including song lyrics, technical data, etc., could be displayed while the transmission is in progress, giving the project an electronic whiff of the original point-of-purchase merchandising built into the album when it was 'an album', since there are many consumers who like to fondle & fetish the packaging while the music is being played. In this situation, Fondlement & Fetishism Potential [F.F.P.] is supplied, without the cost of shipping tons of cardboard around.
We require a LARGE quantity of money and the services of a team of mega-hackers to write the software for this system. Most of the hardware devices are, even as you read this, available as off-the-shelf items, just waiting to be plugged into each other so they can put an end to "THE RECORD BUSINESS" as we now know it.