Well, it's not true. One group (bands, record labels, distributors, companies that press the cd, etc.) is getting hurt when you pirate a CD you otherwise would have paid for. However another group, often including the band you pirated, makes money when you pirate a CD you wouldn't have paid for, like it, and then go see a concert you otherwise might not.

In the end, the net effect is certainly bad for a lot of people, but possibly good for some.

Either way, it is unpreventable and isn't going away, so the question any more isn't so much "who is this hurting and how much?" as "what do we do given the new realities of the industry?" But just because the focus has changed doesn't mean that piracy isn't hurting people. It clearly is. Not as much as they'd like to claim (record industry lawsuits always assume every pirated CD would have been purchased, which is clearly far from true) but still, people are getting hurt.