The Economist understands markets:
Economist.com | Hollywood
The lesson from the music business is that, however hard they try, the studios will not be able to stop copies of movies from being downloaded from the Internet. What Hollywood has to do is find a reasonable balance between protecting revenues and keeping consumers happy. Striking that balance will not be easy. Movie makers do not want to encourage illegal copying on a massive scale by supplying unprotected digital copies themselves. And yet the more restrictive they try to be over what people can do with the movies they pay to download, the more the studios� own Internet services will be a second-rate alternative to piracy.