My girlfriend wrote a great little piece for tha-one.com called Will Piracy Kill The Music Industry.
I love this debate, and I really wish I had time to investigate it closely and recover the data on this. It's interesting how the Internet affects industries in this way, and the media industry is one of those fighting back hardest. Stacey talks about how the Internet interrupts the workflow for the middle man, and offers power to come straight from artists. Alex Day is her example of this, and his attempted Christmas number one in 2011, where he climbed all the way to number 4 - the first to get so far without a record label.