We can talk about how piracy actually helps the artist because it gets their music out there, we might buy a shirt or go to a concert, etc. but the reality for the tiny 10-person labels (who put up the cash to fund the CDS and who rely on sales to stay in business) is that they must pay the rent and pay their employees each month -- no exceptions, no excuses. If income isn't meeting expenses, it's simply not enough that some 17-year-old in Minnesota loves the copy of your CD that he got via BitTorrent.
If income doesn't meet expenses, it still can be enough that some 17-year-old in Minnesota lvoes the copy of your CD that he got on BitTorrent. For many independent labels and artists, the point of music is to get sounds, thoughts, and ideas into peoples heads and not cash into their wallets. These people don't expect to make any money out of their music, but they just want to write their songs, play them and have them heard. If they need money and the record sales, tour sales, etc. don't cut it, then they work just like the rest of us. Believe it or not, many of these artists are happy with this kind of lifestyle. Some prefer not being reliant on their music for their money. You can be more free in making different kinds of music if you're not tied down by the idea that you have to make music that everyone likes so that you can make a buck.
If a musicians quit playing music or putting out records or touring simply because they aren't making money out of it, then they aren't really musicians. They're business people. If a label's goal is mainly to make profit, then greater income than expenses is horrible. However, a label whose goal is to put out music they like loses money, then they'll be happy as long as they can get the music they like to people's awareness. If a label or band quits JUST because they aren't making money, then good riddance.
