See people use the RIAA as an excuse to steal and basically have socialism in the music industry, a good deal of bands are on small record labels that the labels themselves struggle to make money
i don't think overall though the small record labels aren't getting hurt as much as big industry. most people are downloading mainstream crap they heard on the radio or mtv or bet. and then the other top downloads are Pink Floyd, Led Zeppelin, things that have made 100's of millions of dollars. Most people download popular music. not some local on his own record label. don't get me wrong. i download smaller artists but i have supported them somehow, whether seeing them live once or 20 times. or have bought their album and it broke, or own one of their albums and look to see for others. but trust me, if i didn't also download random people's music, i wouldn't know of as much music as i do today, and that should be the real reason for making music, getting your name known and playing great music, fuck doing it for the money