Nice one Duke.
One industry which I think downloading affects the worst is video rental. To hell with Blockbuster but I like my local mom & pop rental stores with reasonable blu ray rental fees. I would rent almost any movie but only buy the rare gems.
It definitely takes away some revenue from sales too , there is no question, but nowhere near what they claim.
What they don't factor in is the fact that downloading will encourage sales too. People watch the downloaded movie and if they like it they buy it. I have seen it many times.