Below is an email from a filesharing website service.  This shows everyone gets paid except the person that actually made the music or the label that spends money to master, promote and release the music.

Labels pay mechanical royalties to release music, legal download stores do the same to sell the music, and fileshares who give way other people's music in numbers often much higher than the actual label or store don't pay anything back, they just take.

Of course people give some friends a copy of an album or some tracks they like, but the problem is not that, its the  filesharers just giving it away to anyone who just likes to take it because it is now free, thousands and thousands of people taking music, not just a handful of friends from someone who initially bought it.  

Then wonder why there will soon be no more creative music or labels who want to spend money to release it.

Everyone see the problem now ?

Here is the email from a file sharing service who I won't mention as they don't deserve the coverage:

an affiliate program with unique offers for all webmasters who are involved in filesharing business.
We offer webmasters to use our content uploaded on free filehostings and ready for a free download via Direct Download Links and earn.


How it works?
Very simple:  
1) We upload over 200 new releases daily to different free filehostings.
2) You get the links to our content with your referral ID in your member area.
3) Your visitors download the content and you get paid.

How do we make money?
We have better download rates due to massive number of unique downloads daily provided by our webmasters and we also make money on sales of Premium accounts of filehostings.

We have just launched a referral program so you will be able to earn up to 20% of their referrals plus some percentage from 2nd level tier.

What webmasters can expect shortly:
While our webmasters get $10 for every 1000 downloads now we are planning to increase this rate and also to offer half of the money we earn from Premium accounts sales shortly.
Videos will be added in a form of DivX, DVDs and Blu-rays by the end of the April. And games and software is going to be offered also shortly after that.