money from performances
When recording first started, musicians were not paid anything for recording, they thought having more people listen to their music would get more people paying to see their performances (or buying drinks/food in businesses paying for their performances), which is how they earned their money. There was a brief historical period when this wasn't true, when the audience for recorded music became large but copying recorded music at home was still difficult.
Another revenue stream not affected by P2P or VPNs is commercial use. The recording societies collect from business owners if music is played in shops or restaurants. At some point these organisations will have to accept that a greater revenue stream is obtainable by accepting that a proportion of blank media and net bandwidth is sold on the back of exchanged commercially copyrighted music/films in order to bring this activity within commercially leviable use, than by trying to suppress this activity and doing without the revenue stream that comes from commercialisation/legitimisation.
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