Simple economics
Long winded, but
IMHO this chap seems to at least trying to be inclusive and does understand the wider implications (which some people seem to be oblivious to) of the need to provide an actual incentive to content producers to produce content (through some form of licencing or another revenue model).
If no one can be assured that they will be reimbursed to some extent, so that they will see at least some return from their efforts (be they uber record company's or small studios, bands, sound engineers and production companies etc.) through some method then a lot (not all) of the content possible simply will never be made.
Where the disconnect between the RIAA etc. and reality exists is that the simple truth is that the whole business model (based on them controlling the dissemination of content) is broken and has been for some time. Instead of engaging in 'protectionist' legal and other actions, the industry as a whole should stop alienating a large proportion of its potential customer base and innovate (as most organisations proclaim to be doing, but few actually are) a new business model.
Perhaps a realistic fee, with a defined percentage going to the artist(s) levied on those who desire it, for unfettered access would be one potential winning idea (as put forward by some).
I do agree that at present, the distribution of monies to actual artists by large record companies is at best haphazard and I completely disagree with drawing a comparison between those downloading content for personal enjoyment and those using it to produce pirated goods for sale
Maybe they need a few more techies in the boardroom :)