As for the record companies, I'm not sure which format leaves them better off, or worse off, depending on your view. When you'd got fed up of a CD, tape or record you could give it to your mate or hand it in to a charity shop. That didn't do the record co's any great favours because they'd prefer it everyone bought new copies, but at least they knew you didn't have any simple method of mass-distributing it illegally. With downloads, you can't hand-in unwanted/inherrited downloads at Cancer Research, but what you can do is give ten of your mates bit-perfect copies on any old memory stick, and they can do likewise with ten of their mates at anfinitum, and the thousandth copy will still potentially be a bit-perfect copy of your original, providing no-one's c*cked about with it inbetween time