You couldn't be any more wrong. There were a very limited number of friends who you could share your music with before Napster came along. Record companies knew it was happening, but the quality of the dupes was poor, so they acted as a help to the industry. If someone really liked the song but wanted a good copy, they had to buy it.
College students and digital recordings changed everything. One person can buy an album and rip it, then advertise it on "Napster" (used as an example whose history everyone is aware of). Millions could then pull down the album from around the world. I have friends who have never purchased an album because they get their favorite music for free on the internet, and the copies are as good as the original recording. That is shameful, and it is stealing.
Question - If the crime has no clear victims, is it still a crime? Answer - yes.
Question - If we knowingly take something that doesn't belong to us, does that make us a thief? Answer - yes.
Theft is theft, even if only the rich are effected. And, BTW, many struggling artists have their music downloaded every day too, and they are not rich. Sure, it helps them grow their audience, but if they never become popular enought to sign a big album deal, they will never reap the rewards of their hard work. But go ahead - keep stealing. Tell yourself it is no big deal. Compromise your values...