When I used to make more money (before my health went downhill) I used to buy CDs all the time despite the fact that my friends were downloading music for free. Currently I bring in a little less than a thousand a month total (from my site and my Social Security income, plus whatever freelance design work I can get) and have hundreds of dollars in medical bills, minimum. That doesn't really bother me (and lots of people have it worse), but I'm bringing it up to point out that right now I wouldn't even be able to buy CDs if I wanted to, therefore I don't consider the music industry to be losing money on my account if I occasionally download a song that was suggested by a friend. The alternative wouldn't be buying the music, it would be just not listening to it. I think that if I can get my income up to a more standard level, and get away from Social Security, then I would likely go back to buying CDs retail since there are many places with reasonable prices (especially since I don't mind used products) and I appreciate having the original case and packaging.
I pay to see movies... with my arthritis I couldn't sit at my computer to watch them, and anyway Portland has an awesome chain of theaters run by a local brewery where you can see slightly older movies in renovated, historic theaters for two or three bucks (with pizza and beer). Mind you, I can't afford this very often, but I do it often enough that I don't feel like everyone gets to watch movies but me. =P
I don't buy new software... I just use the same software I've had since I last had a regular income. Occasionally I'll buy a game (the last game I bought was FFXI for the PC) but even that is rare.
As far as the music is concerned, I wish one of the legitimate services would come out with some kind of points program where you can watch advertising in exchange for downloading music. I certainly have more time than money, and I do feel guilty sometimes that I'm not paying for what I'm listening to.
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