+1
I teach (20 students), play in two bands, and own a mobile DJ service booking 20 weddings per year (I could easily double that if I didn't teach and play live music).
I run into people all the time who try to tell me my business. "You're charging too much." "You're not charging enough." "You can't do that, you're putting the rest of us out of business!"
Get stuffed. I make a good living wage 100% in the music industry. If I give a discount or do the occasional freebie, it's my call, I think I know what I'm doing, and I'm not taking one crum of food out of anyone's mouth. That assertion is just crap, the scapegoating of misguided whiners.
Your business model may be diifferent, and I promise not to criticize it. I consider myself "succesful" in the entertainment industry, and my business model still involves the occasional free sample and audition. Even some of the most highly succesful businesses in the world use this approach.
I pay my bills and take a nice vacation every year, and I do it with music. Get to where I am, and you shouldn't have to worry so much about every hack band in every podunk town doing a freebie. I sure don't.
I suggest any musician or band worried about what "freebies" are doing to the entertainment world work a lot harder and get a lot better. The more you have to offer a venue or client, the less what everyone else is doing (or charging) should matter.