jam...
...it sounds like you are not familiar with what is happening here.
College kids are the biggest offenders. They are using someone else’s property, college computers, servers typically, to make someone else’s property, copyrighted material, available to anyone for free. They are stealing it and giving it away.
Plenty of artists are fine with this. Plenty are not. When you buy a CD or movie, VHS, DVD, etc, you own it and can do what you want as long as it is non-commercial. Loaning it to your friend is in no way comparable to making it available to the entire world.
Since the rise of popularity of Napster then the newer services retail sales of cd's have fallen 10% a year. I'm a parent and I know damn well why that is. So do you.
Now, that said, we are talking about a rapidly emerging technology. CD's themselves were rare 10 years ago. So, the record companies have waited until the technology has matured enough to get a handle on. There are already pay per download services and there availability will expand to meet the market demand now that the whole market is starting to crystallize into a coherent thing.
The music is property and whoever wants to give away their property may do so. Whoever doesn't want to will just have to see what the market will bear.