Earlier quoted context omitted.
I've always said this regarding piracy - the reason many people pirate is that it is faster, easier and cheaper than paying for content. There is no system by which I can pay money to watch TV shows as soon as they are done airing in the USA, I either have to wait for the DVDs, hope the show airs here too, or pirate it. To regurgitate a popular TV quote: Shut up and take my money! Those services that do exist are all…
"I've always said this regarding piracy - the reason many people pirate is that it is faster, easier and cheaper than paying for content." It's the beginning of the entitlement generation. People aren't getting what they want, so they take it. Unless the content is $0 and you can get it whenever you want, the vast majority of people pirating will not stop. I've haven't seen the end of the excuses. There are plenty of…
1. "It's those @$#% kids!" In other words, promulgating and perpetuating an unnecessary generational divide. The "entitlement generation" will soon enough be running the show, so the incumbents are only doing humanity a disservice by taking a scorched-earth-like policy instead of figuring out how to run a sustainable business that satisfies the demands of the technology-enabled consumer.
2. "Pirates gonna pirate." There is no "pirate" demographic, no one reason why people copy instead of buying. Maybe they've watched the first season of a show on Hulu, but the later seasons are unavailable. Maybe they'll pay for content or watch ads, but not both at the same time (Hulu). Maybe they missed an episode of their favorite show and don't want to wait 30 days to a year for it to show up on Hulu/Netflix/DVD.
Assuming that all pirates are of equally dubious moral character is defeatist, elitist, and self-damaging. It's defeatist and self-damaging because it's ignoring the potential to expand one's market to reach some of the pirates. Each incremental step out of the inglorious dark ages of big media and into the digital light will capture another n% of the currently-pirate market. It's elitist because it regards having a different moral code as inferior, when in reality, it's just different.
This addresses your second-to-last paragraph. Pandora is a pain because it's deliberately crippled. If you get a mix you don't like, you can only downvote or skip a few songs before you're forced to listen to whatever they play, and that restriction applies across all of your stations. In other cases, it's a deficiency of marketing/awareness/trust, user interface, selection, ISP bandwidth/throttling, or pricing.
Finally, give it time. The typical college graduate has probably "acquired" more music over the past 7 years of their lives than they could ever have hoped to pay for. Some of those will eventually convert to paying customers as they begin earning real money, and their increased access to creative content during school may have inspired them to greater societal contributions, from which all of us can benefit.