It's amazing that some still don't acknowledge this point. It's the difference between 99% (or higher) [1] profit margins and less than 10% profit margins, in the case of a kitchen blender.

Even more so, the 99% profit margin isn't the whole story, as torrents are arguably more efficient (by making use of spare bandwidth among the populace). The 1% marginal costs for legally downloaded media primarily exists only because of the company's need to tightly control distribution and charge for access. With torrents, this requirement disappears and the marginal costs drop even closer to zero.

[1] I'm only counting bandwith costs here, which seems to be at most $0.05 per GB. This is what Google charges for their CDN traffic, so their internal costs per GB must be lower: https://cloud.google.com/interconnect/cdn-interconnect#prici...