Music works the same way. With the introduction of the cassette tape the record industry made similar complaints about an infringement on their profitability. However, people who make tapes listen to more music - and at the end of the day, tapers of music consumed and purchased more music.
The RIAA is acting foolishly. Instead of using the internet and technology to improve the marketing and distribution of their product, they fight technology and antagonize their customer base by labeling and treating them like criminals.
Music downloading is a crime? Technically I suppose it is. However, when the record industry was busted recently for price collusion, from my perspective they lost the moral high ground. I have absolutely no respect for the RIAA and the industry in general. It won't be long, and the recording industry will be completely different from the way it exists today. Hallelujah.