It’s fairly obvious that people who are downloading music and movies illegally are fans, and should be treated as fans (not as enemies).
Most people are only downloading music (or movies) from their favorite artists.
So, think of it as a marketing challenge.
How should you promote something that people could get for free?
You should of course make it remarkable (like Seth Godin and his Purple Cow).
Create cd-covers that are so cool, that people just got to have them (maybe they even need to collect them).
Create a free prize inside; every 100th buyer will win a ticket tor their next concert or put some extra hidden features on the cd (like Bon Jovi did a few years ago).
Make the quality of the sound so much better on the cd (not sure if this is possible though).
Create hidden features (footage from concerts) that will be too hard to find unless you buy the music.
Create a booklet that comes with the cd, where all the fans can read the untold story of the band.
Publish press releases (and put it on the cover of the cd) that 10 cents of every Dollar (from the sales of the cd) will be donated to a specific charity project.
The problem with fighting piracy, is that most people don’t feel sorry for the artists or the record companies (or the companies making movies for that matter) if their sales are dropping. Because most of the popular artists got more than enough money, and that’s all we ever hear about in the media, so why should we care that much about stopping piracy?
Yes, I know , it’s the new artists – the ones without the cash. But the problem is still the same, every new artist with a breatkthrough will get rich (we have enough examples of this even from the small country of Norway).
I believe that the only way that the music business and the movie business can fight piracy is to start treating every person who are downloading illegally as fans not as enemies. Treat them like kings and queens, that’s what they deserve and only then will they start buying cd’s and dvd’s.