We can argue whether or not file sharing is ethical until the cows come home, but looking at it from a business standpoint the entire piracy situation is spiraling out of control. Everyone in the entertainment industry can't seem to wrap their mind around the fact that the entertainment industry is a market driven by what the CONSUMER wants. Their first mistake was with Napster. They noticed the file sharing program and started a campaign to outlaw all file sharing. By doing so they cut off an entire generation of potential costumers. Instead, they should have embraced the popularity and found a way to monetize Napster and other similar programs/sites. Obviously now the file sharing situation is far too out of control to monetize in its entirety. The music industry has been paying for their mistake ever since. The number one rule of any business/industry trying to sell any sort of product whether it be albums or snuggies, is to adapt to what the consumer wants. The industry is trying to force their traditional methods down the consumers throats and the consumers are smarter than that. There is a silver lining in this cloud though: as long as there are people, people will love music. Whether its 360 deals or Spotify, something eventually will come along and save the industry. All of the dinosaur record label CEOs will become extinct and the next generation will find a new and innovating way to make the consumer, artists and middle man happy.
"The winners are the ones who embrace change"
-Hulu CEO Jason Kilar