That's fair, but the question is what impact does piracy have on music production.
The simple assumption is supply vs demand, the if demand goes up, more suppliers will enter the industry and more music will be produced? (because there is more profit)
And piracy reduces the amount of profit thus hurts demand.
Does this work in the music industry?
Well first, the beatles are dead. No amount of demand will affect the supply.
Second the cost of copying is very low. Thus it is in a music producer's interest to sell lots of one artist's record instead of taking on the extra cost of producing another artist's album. So more production can mean more cheap copies (if you had to get a performer each time you wanted to supply music then the standard supply-demand might be closer to accurate) and less diversity and less people joining the industry and making their own music - this is a negative result of our copying technology and piracy is, by contrast the positive.
If you look at the individual, I may set aside €20 per month to spend on entertainment (new games, eve subscription, music and videos) If i can't afford more than €20 then no matter how many time i copy a music album the most i can spend on the music industry is €20 - there is no millions being lost by the music industry in this senario. If i come across a new artist who i like (and donate on their website to help promote them) then there will be more supply, more artists earning a living from producing their music. (or equally if i go to their concert having already heard their music for free online and pay for my ticket)
itune on the other hand offers me a substitute to pirated music, and the product itself (as i understand it) is worse. It can only be played on certain devices, and thus is less valuable to me (and they want me to pay more money for it)
No you're not going to change people's behaviour by offering them sub-standard products when they are currently used to something better.
The movie and games industries are doing a little better.
DVD release contain 'extras' and while they are often shit, imho, they are extra content, they're giving you more if you buy the DVD. Games companies can provide DLC, DownLoadable Content, which they only send to their registered users who bought a legit copy.
webdiplomacy and wikipedia provide examples of not-for-profit business models. They still try to provide a decent service but they run for free, because they have truely embraced the new technology. (Kestas could, i suspect, easily make more money from this site if he highlighted the donate button more often - and a fair wage would be fair.)
The difference is customs and legality. Free music online may be a viable business model. Free movies... well youtube is a shining example of how well that works, and i don't think google are making much money from youtube....