What's interesting is the studies that show that the folks who download the most are the ones who typically spend the most on music, movies or other forms of entertainment. I'll see if I can dig some up, but the bottom line is that people who like to collect movies or music are going to do so through whatever avenues are available to them.
The problem with all the rhetoric about intellectual property and rights and theft and so on is that in my mind it fails to address reality. Saying that it will devalue the product is behind the times -- it already has devalued the product. The perceived value on all sorts of media is through the floor right now. When people can get stuff for free online in minutes and can carry a year's worth of music in their jacket pocket, the value of any one track drops to the point where it's virtually nonexistant.
What needs to be done, and what the smart content producers are already doing, is to find a way to exist in the new climate. Usually that involves adding value to the product in the form of things that can't be had elsewhere. Going to the cinema is a classic and still valid example, and 3D IMax theatres are even more so. At that point you're capitalizing on the experience as much if not more so than on the actual product.
Tangential revenue streams are another thing, and Charlatan has noted that a lot of independent musicians are making a decent living that way. Give the music away to increase the value of concert tickets, merchandise and so on.
These are not new ideas, by the way -- what we're talking about here is in essence what television has been doing for the last 60 years or so. Give away the content to attract an audience, then find a way to capitalize.
I'm confident these things will be resolved, and in the near future. Finding ways to make money are what these big corporations are good at.
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I wake up in the morning more tired than before I slept
I get through cryin' and I'm sadder than before I wept
I get through thinkin' now, and the thoughts have left my head
I get through speakin' and I can't remember, not a word that I said
- Ben Harper, Show Me A Little Shame
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