Music pirates are the first to lose because the recording industry and law enforcement officials are cracking down around the world. Do the crime and you will pay the fine or do the time. Consumers also lose because the shortcut savings enjoyed by pirates drive up the costs of legitimate product for everyone. Plus, good luck returning a pirated tape or CD when the quality is inferior or the product is defective, as it often is. Less business means fewer jobs, jobs often filled by young adults.
Record companies lose.
Eighty-five percent of recordings released don't even generate enough revenue to cover their costs. Record companies depend heavily on the profitable fifteen percent of recordings to subsidize the less profitable types of music, to cover the costs of developing new artists, and to keep their businesses operational. Finally, and perhaps most importantly, the creative artists lose. Musicians, singers, songwriters and producers don't get the royalties and fees they've earned. The artists also depend on their reputations, which are damaged by the inferior quality of pirated copies sold to the public.