A while back, Phillip from Gama Bomb shared a blog post about online file sharing and the future of the music business.
One interesting bit he wrote about was that although Gama Bomb offered their last album up as a free download, they still sold just as many hard copies as their previous release. Also, as a result of offering a free album, they noticed a growing number of fans at their shows, and were able to procure a higher fee and sell more merch. Nice.
He makes an interesting case for the music industry to flip over the old school ways of business and embrace file sharing. Check it out here.