Since getting my hands on spotify my music spending has dropped a bit - and rendered pirating pointless for all but the very hardest to find tracks - but I spend WAY more than £77 a year on music... if it wasn't for the ability to quickly check out tunes on youtube, via less legal methods, spotify, etc. my spending would probably be closer to nothing...
I would say that for every freeloading pirating scum, theres atleast another 1-2 people downloading who spend a considerable extra on music due to the increased exposure... and no doubt theres a knock on effect where those freeloaders either through playing the music or sharing it with friends expose people who are willing to give something back who will then go on to buy more music from those artists...
Stifling piracy will ironically result in a massive drop in revenue... and I wonder what they will blame that on...
The media companies need to concentrate on making convenient, fairly priced (for both parties) distribution systems with timely addition of new content and educating at a grass roots level the basic concepts of copyright and giving something back.