<soapbox>
As an actor who lives off of residuals and a long-time professional creator of software, piracy is a subject very close to my heart.
Before I begin, let’s get real about why people pirate: for 90% of us, it’s not because the prices are ridiculous, or because piracy is a political act against the hegemony of evil corporate capitalism. It’s because people like getting stuff for free. It’s analogous to [most] hackers defending their actions as political acts, when, let’s face it: defacing that girl’s Hanson fansite on Angelfire is a real power trip.
@squirbel frames the discussion very nicely (though I think it’s markedly more complex than progressivism vs. capitalism). Do we need more granular ways of defining ownership and copyright? YES!!! Do we need better methods of distributing art and digital property? YES!
But let’s talk about the people at the big record labels. Most of the low and mid-levelers are kids in their late twenties, scrounging to make a buck, and when Electra folded when Napster exploded, they lost their jobs.
Now, the topics of “whether art and capitalism can co-exist” and “the productization of art” are beyond the scope of the question, but for every “rich artist” there are thousands of “working artists” who depend on that commercial gig to make ends meet, and when the providers of those gigs—the labels, the studios, the commercial agencies—cut back on the work because of piracy, or because people stop watching commercials and the companies have to rely on product placement instead, the “working actors” are the ones who get screwed. You cannot be a working artist in the US without a commercial source of income.
I think the real question we should be asking is: “How can we make piracy irrelavent?” Better distribution and monetization technologies to address the obvious market desire is great (see iTunes). But even better would be government subsidies for artists so that when people do pirate your songs or TV show or your code, you don’t hurt as much—but that will never happen in the US (and perhaps it shouldn’t).
But, until subsidies arrive, or we change our methods of paying for media, I’m still saying that piracy really, really stinks.
</soapbox>