A single graph and a quick blurb about it isn't nearly enough to be able to say that piracy is, or piracy is not, killing the music industry. At the very least it would need to take into account if used music sales have increased or decreased over the past x years, if there's a correlation between that and new recorded sales, how the rise of streaming services has affected the industry and if royalties are accounted for, and a lot of other external factors.
This has been shown over and over. Some people refuse to believe it. The fact is, that pirates, on average, pay more for media and entertainment than non-pirates. It's because they are bigger consumers. So to get that fix, some resort to a bit of piracy and instead pay for concerts and such. In video games the same thing applies. They pirate some games and purchase others. There's just too much media to pay for it all. So piracy has increased. The same amount of money (if not more) is still being spent though. Just in other areas.
Piracy is killing aspects of the music industry. Look at the orange line on the graph. Recorded music has taken a swan dive since 2004. The entire industry may be doing alright aggregately speaking because of increased concert sales and a brand spanking new revenue stream in mobile, but it's certainly killing parts of the industry. -Not saying that it's good or bad, but its not as black and white as this graph's top line makes it appear.
As always the industry has to adapt to the new technology this is what the graph shows. Piracy can be free advertising, aiding in the exposure of content. And it might actually turn into sales as pirates decide to buy something they feel is good enough and worth supporting. So piracy can be a form of content trialling.