The article is not speaking about the first order benefit of the work being created originally… it is talking about from the perspective of piracy… piracy advocates always make the argument “well the creator doesn’t lose any money when I download the movie, and I get to watch a movie… I win and no one loses, how can that be bad?”
The article is trying to point out that the counterpoint to that is that yes, for the particular work you are downloading that might be true (no one loses and you gain), the second order effect of piracy might be a reduction in creative works being produced.
So what is first order vs second depends on what you are talking about… the creation of the work or the copying. I think it is useful to frame it this way because piracy advocates always start their argument from the work already existing.