What is interesting about his comment is that Prince was ahead of the curve with online distribution - he was messing around with that back in the 90's. My guess is that he's seeing a couple of phenomenon that give him pause. One is the fact that for distribution in a lot of ways only the middle man has changed. The other is that one could argue that social networks taken to their extreme over saturate the market and turn people into even shorter attention span creatures.
Or maybe I'm projecting
I'm in the Prince = genius camp. No, I don't care for everything he's done. But he's a "total musician" in the footsteps of Stevie Wonder (playing all instruments on albums), he had vision, and the balls to do it his way.