The music industry fails to understand that a primary reason that consumers illegally share music files is that they want insurance against the music industry itself. File sharing is as much about risk sharing as it is about the theft of value. Technology makes file swapping possible - but the music industry's business model, which is at odds with the implicit contract it signs with listeners, is what makes it probable.
The contract between record labels and music listeners follows basic economics: The labels assume market risk in exchange for value. They take on the risk of talent search, artist development, and distribution costs, in exchange for profits... More
