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Originally Posted by Tomkat
So people only download ("steal") music from mediocre artists?
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It's not wise to generalise on the whole population: "people". You really have to use subsets. As Gay You Are reiterated poor people are more likely to steal even from artist they view as above mediocre. The well off will steal from artists they either don't know that much about or don't have much of an opinion on. The wealthy and (and a small subset of the poor who are particularly devoted to a particular artist) will, however, shell out money to monetarily support an artist, especially if they feel they are directly in contact with an artist as opposed to directly in contact with the artist's record label which will keep a proportion of the sales and all the copyright itself (nearly all of the time).
Therefore CD sales will decrease. However, if you sell to your audience directly the decrease doesn't matter so much and as your band will have more exposure you are more likely to yield rewards in concert attendence, as already stated. This is to add to the aforementioned retention of copyright, which yields its own monetary benefits.
But I mostly support piracy as the break the music industry's monopoly on musical exposure / marketing / whatever the correct term is.