So.. let's say we have a band. It's really good. Really hot. Sweeping the internet. Pirated to hell and back, but sales are in the tank. Who cares, right? They get their money off of concerts and merchandise.
Except who pays for the studio time for the band to record their next album? The label? They're like, "Sorry guys, you really haven't sold enough, hell, we haven't recouped your last album, yet."
They can just make their money from the tour, right? Again.. who fronts the money for the tour? Unless it's 4 guys in a rusty van.. it's the label. Band ain't selling though, and for the label a tour is simply a promotional gig. If it doesn't look like the band is bringing in enough money to justify the label fronting for a tour.. guess what.. they won't.
So now, this really hot band ends up going back to playing local pubs in their home-town and around. To survive, instead of spending their time writing music, they have to spend it working at Home Depot or some such. Mmm.. productive.
So saying, "It just takes money from the record company" may be true.. but think about what the record company actually does and you may reconsider whether that's a good thing or not. All of you pirates better be glad there's folks like me who purchase all of my music.. because otherwise you'd be stuck listening to bar bands.