I was a member of one of those generations. Sure, we recorded songs off the radio, or copied tapes of friends' tapes (well, actually I never did, but I could've). However, we also bought albums, for 2 reasons: Because our friends didn't always have the stuff we liked, or we found something they would like and bought it first; and most importantly, because tapes of tapes, and radio recordings, weren't as good in quality as the albums.
Back then, we bought music and shared it with our friends, by getting together and playing the albums for each other. Don't confuse those generations with people who buy 1 copy of a song and share it with thousands of people they don't know.
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