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For thousands of years, artists, songwriters and playwrights created songs for entertainment, and in the cases of the Church, Kings, etc., hiring performers and writers and artists under a works-for-hire contract was the exception and not the norm.
The concept of mass produced music that one pays for as a tangible object (Vinyl, CD, etc.,) is a recent invention. The artist creating music for the sake of art or for enjoyment is much older then a desire to gain monetary gain, so If people don't buy new music, then those SELLING new music will discontinue selling, and those who do not see profit as a primary motivation shall continue to make music.
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I may have gone too far by saying there wouldn't be any music if people wouldn't buy it. As you say, people have been creating music for as long as the human race has existed. It's basically in our genes. But todays music is to a large extent a commercial product. Most artists wouldn't be known today if it wasnt for the record industry, handing them contracts and advertising their music. People need to earn their living, musicians included. If everyone simply downloaded eveything they wanted it would be a catastrophy for them. No artist can devote their life to music without anything in return. It's a capitalist society we live in, so it's ineviatble. Until that changes, piracy is going to remain a problem. Many underground artists hand out their music over the internet for free, which is great. But most of the time, the reason they do that is because they are hoping people who listen to it will spread the word around that there's a great band out there who need a record contract.
This is my point of view and in your eyes I may be wrong but this is how I see it. I wrote a long school essay on this subject some time ago and my opinions are based on the research I did back then.
And LeHah, great for you that you feel the need to spend all that money on your music interest. I could do that too. But I buy alot of videogames and my music interest probably isn't as big as yours. It's all about priorities.
This thing is sticky, and I don't like it. I don't appreciate it.