@Paul
Now, I am not a 'freetard'* by any stretch and am, in fact, quite taken aback at the amount of (what I deem) casual copyright infringement. But, even then, I would not say that I "accept" that privacy reduces sales.
I don't necessarily disagree, I simply don't accept it - at least not without good, hard numbers that have been properly compiled by reputable, reliable third-parties free from vested interests. And even then, only so long as I am convinced that they have been gathered and assessed with sufficient consideration of the myriad factors that might skew them.
What I am prepared to accept is the possibility that copyright infringement reduces sales, but one would have to quantify what is meant by 'reduce sales'. it really has to be a broad trend, measurable, repeatable and of some level of impact that is relevant.
It would seem to me nearly impossible that 'piracy' doesn't decrease sales in some absolute measure, but if, for example, someone would, in the absence of illegal downloading, purchase just one DVD a year then that is rather too small an effect to bother with.
I think one of the biggest problems with this situation is that the content owners or, more accurately, the big lobby groups representing them, spew vastly inflated figures that would be humourous were it not for the fact that our politicians believe them and then regurgitate them, usually verbatim.
If they actually spent some time and money investigating things honestly and with a goal of getting at the truth and understanding the causes then they would make for themselves a far more compelling argument. There will always, of course, we those who won't pay unless they 100% have to, but they are a small group and should not significantly affect the industry.
Be honest about things and make a genuine attempt to understand the issues and address them with your consumers rather than leaning on politicians with ridiculous numbers. That's how you change people's thinking and behaviour - be on their side and understand the reasons and try to find a 'win-win'.
Make and end run around consumers by trying to get laws changed and you will never get them on side.
* - I dislike the term anyway as it can be used to essentially discount a whole slew of often rather relevant and well-considered arguments and close-off an avenue of discussion that might otherwise be productive.