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I generally download stuff, and I generally support the artists I like in other ways, such as buying their merchandise/going to concerts, etc.
Also, if a artist is smart enough to sell their music w/ bundles of cool stuff, like Amanda Palmer does, I'm much more likely to buy it.
The interesting thing is, I download way more music than I would ever buy. I'm not saying that makes it okay, but I guess I'm not really cutting into sales one way or another. For example, I downloaded Lady Gaga's new cd. There's no chance in hell I'd ever buy it though. I'm not saying that makes it okay, but some bands are never going to get my money, whether I download their music or not.
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