I think that companies just need to smarten up a lot ...
I can go out and inexpensively buy 1TB of hard-drive space and fill it with 1,000 DVD movies or over 100 1080p movies with very little effort at a very low cost. Pirates are far more efficient than the official distribution channels and most movies are available for download weeks or months before they're actually released. When content is cheap enough ($5 DVDs for example) when people see that a movie is available they buy it without question, but when it is more expensive ($30 Blu-Ray movies) people are far more likely to download the movie and stream it to their TV or burn it to disc; on top of this, when content is inexpensive (like allofmp3 was) people may spend far more money buying more content because they are far more willing to take a risk on something they probably won't like.
Basically, companies need to decide whether they want 10% of people to spending an average of $25 a month on a single peice of content or whether they want 90% of people spending an average of $100 on dozens of peices of content.
