Years ago, in an economics class in University, the creation of "black markets" was described to me. One of the key factors to the creation of these black markets is the price associated with a product, and the example that was used was gasoline. What we were shown was a graph with the (inflation adjusted) price of gasoline and another graph of the number of police reports filed about the incidence of people syphoning gas from other people's gas tank; what the graph demonstrated is that when gasoline was inexpensive few people stole it, and as it became more and more expensive theft became more common.
Now, it has been my opinion for a long time that with digital distribution drastically lowering all costs associated with selling movies, music and videogames that producers of this content should be selling this content at a price that is low enough that few people would bother stealing it; and recover the "losses" from this model through higher volume sales. Hypothetically speaking, if you're paying $0.10 for a song/$1.00 for an album, $0.25 for a TV episode/$2.50 for a season, $1.00 for a movie, and $10.00 for a videogame most families would probably spend as much or more on entertainment, the content providers would make as much or more money from them, and piracy would be eliminated.
