This way would be similar to copying tapes without the losing the sound quality. For the people wanting to get their hands on more obscure stuff it was now possible if someone had uploaded it to the internet. Even out of print records could be gained, whereas it would've been next to impossible to get a physical copy anymore.
Once most people had access to the internet, illegal downloads spread like wild fire. With similar programs like Napster popping up such as Bearshare and Limewire, people were downloading songs as easy as searching the song title and clicking download. Another form of downloading came around in the form of torrents, meaning you could download vast amounts of files, essentially downloading an artist's entire discography at the click of the button for free. Once people could get copied CDs for a much cheaper price, they didn't need to pay the full price at the high street. So people's value for music lowered, why would they want to pay more? Once they got the know how on downloading it for free, why would they want to pay at all? These artists are signed to major record labels earning millions living the high life, what would one sale less do to their livelihoods?.
A few years down the line this did prove to be a problem for the entire music industry. Profits where going down, labels weren't taking chances in experimental artists and playing it safe with definite hit makers. Stores weren't selling as many CDs anymore, with a number of major chains shutting down. The industry needed to change its way in distributing it's product to consumers. With people now up to speed with being able to download music to their computer, surely the labels could get them to download it for a price legally. This is where iTunes comes in. iTunes allowed people to buy music from the online store to their computer, saving people the journey of having to travel to the store and search for it, hoping they have what they're looking for.