The title is a bit rough, but the argument thoughtful, and to the point. The "Market Participants" part is particularly interesting. I would however argue that the "cheapskates" are much fewer that is commonly thought. It is true that few students would happily spend $20 on a CD, but if there were no other way of getting music, most of us would go ahead and spend these $20. We would just be more parsimonious in our music/media consumption if we had to pay for everything.