All piracy is doing is driving companies to switch to all digital, DRM protected type video files only available online. Piracy right now is causing a decline in profits but eventually production companies will realize that this will cause a decrease in production costs since DVDs will no longer have to be produced and reprinted. It is human nature to reject technology for being threatening to their well being but eventually people realize that it can only help them.

The best example is Steam game distribution technology by Valve. Valve is dominating the gaming industry even though they have released only a few games. They realized that while the internet can promote piracy, it can also discourage it heavily through online authentication systems and such. Many companies are releasing games on Steam and find that they are selling more copies through the digital technology than through DVDs. People want convenience. I think that is what is driving piracy more than anything. The ability to simply download content without having to go to a shady porn shop or having it shipped to their homes.

Current online piracy is no worse than it was before being described in this thread. You could easily download any newly released DVD on USENET 6 years ago. The IRC channels that supply hacked online logins have been around for years. It’s no big deal. I don’t see Jules Jordan driving around in a Ford Pinto.