How will the music industry business model change with high resolution downloads?

If one can pay a one time fee to download a high resolution .flac file that's equivalent to the original master onto their PC, make as many copies as they like to send to friends, or perhaps even sell on the black market, how will the music industry sustain itself?

Won't artists and recording producers simply stop making new music albums if the profit margin becomes to small to make a fair profit?

I don

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