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the problem is you are ignoring the fact that a large majority of those free downloads are people who didn't listen to the band before
so for example if the audience doubled for their album then only 12% of their existing audience was free loading
that not bad
remember you had to register to gain access to the music so there is marketing value in that list of people because you can significantly reduce the cost of promotion for tours / like bands etc.
hell radio head is probably make $1-2 per free download in reduced advertising cost for their tour, and sell ad space to other like bands (if you liked our new album check out ... )
Establish bands could provide the services of promotion that record companies currently provide Gator and reap the profits from support
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“When crimes occur through the mail, you don’t shut the post office down,” Steve Wozniak
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