This may have been posted here before but just in case it hasn't:
"My long experience with bands and musicians has taught me that they understand their place in the world pretty well. They also understand that music is (always has been) free to consume. If you play your radio, it costs nothing to listen. If you walk by an open window while someone is playing an album, it costs nothing. If you stand outside a club and listen, it costs nothing. Music is free. Musicians often sing and play informally (get this!) just for fun.
Records, concert tickets and the use of music in commerce -- those things cost money.
The primary relationship that drives all parts of the music business is the relationship between a band and its audience. Record retailers, labels, producers, managers, lawyers, promoters and other parasitic professionals all subsist on whatever money they can siphon off of this fundamental relationship. Mechanical and broadcast royalties (the royalties supposedly "lost" through file sharing) are the part of this transaction that is least efficient in getting money to the artist because most of it is siphoned-off by the rest of the music industry. Of a $15 sale, the average band stuck on a major label may not receive a single penny, and amortized over the life of a release may receive (after all the other players take their rake) a buck or so.
I should note that entrepreneurial independent labels that operate on a profit-sharing model can be an order of magnitude more efficient, and that one of the efficiencies is the lack of promotional outlay required because fan file sharing does the promotion for free
In short, these "lost" royalties are a huge part of the revenue stream of the institutional part of the mainstream music business, but a miniscule part of the income of a band.
Almost universally, bands and musicians are happy anyone is interested in their music enough to become a fan, and they know there are many opportunities to do some business with such a person that may or may not involve selling him a particular record.
They also recognize that a download by someone unwilling to buy a record is not a "lost sale," because that person has made it clear that he is unwilling to buy a record. You haven't lost a sale, you've made a fan for free. Fans eventually want to buy records, concert tickets and other things.
A single sale = a small bet.
A lifetime fan = a huge pot."
Thoughts?