If they reduce their prices, people will buy from them instead of thieves. Their profits will rise because they will get a bigger market share, and they will also create new customers - the ones who will not pay high prices or thieves.

While they are at it, they can unbundle albums and give an explicit license that says where I can play music that I have bought. There really is no point in me buying a CD now that they will sue me for playing it on my own ogg player.