At best it's free promotion. The thing is, piracy right now is rampant, but it doesn't seem to have a measurable effect on profits. As in, they aren't dropping.
In 1999, when I was first published in Russia (with a print- run of 3,000), the country was suffering a severe paper shortage. By chance, I discovered a ‘pirate’ edition of The Alchemist and posted it on my web page.
A year later, when the crisis was resolved, I sold 10,000 copies of the print edition. By 2002, I had sold a million copies in Russia, and I have now sold 12 million
Eh? Music industry sales have dropped off a cliff starting around the year 2000. It's been a bloodbath, they're now at something like a third of what they once were:
Edit: Here's a concrete example of "At best": http://anton.nordenfur.se/paulo-coelho-destroys-piracy-myths...
In 1999, when I was first published in Russia (with a print- run of 3,000), the country was suffering a severe paper shortage. By chance, I discovered a ‘pirate’ edition of The Alchemist and posted it on my web page. A year later, when the crisis was resolved, I sold 10,000 copies of the print edition. By 2002, I had sold a million copies in Russia, and I have now sold 12 million