I have a simple solution. Make the media availible in your home at a reasonable price. No more piracy.
If the media was availible at home at a fair price everyone would buy it period.
Their real and only problem with this is..
#1 They can't sell you crap. One band puts out three good songs. they make you pay for 17 others on the CD that will never be listened to. They know that no one is going to pay $20 for three songs, or $7.00 a song.
#2 They wont get as much per person for movies. Right now it costs about $60-$65 to take my family of 5 to the movies (if we snak in our food/drink). They know no one is going to pay $65 to download a movie
#3 They can't advertise their upcoming stuff we all skip the previews.
#4 Control right now they control the media. They control what movies are good and popular and what band is cool and popular. They can take somone with no talent, no charisma, and no morals. They make that person into an idol, and capitalize on the "IMAGE" (action figures clothes etc) they in essence can control fads, attitudes, and culture their influence is huge.
A perfect example is the movie "transporter" it's a fine movie good actors and a decent plot (not awesome but good). 90% of america never even heard of it. Then take the movie with Tom cruise and Nicole kidman, eyes wide shut. What a peice of crap. I bet you that movie scored big and they made tons off of it. Why? because they have control of promotion, and advertising.
It all boils down to Greed and control, and fear.
Greed
When you release things on the internet, you have to charge what people are going to pay you can't overcharge, they just won't pay it. You can't force 17 crap songs to a person for $20. You're going to get a maxx of $3.00 per song. With movies your going to get $5.00- $20.00 max per family. NO ONE is going to pay $65 for a movie. Right now they get both. You pay big bucks to see the movie, then you pay the little bucks to have it at home (dvd) You buy the movie twice, and they love it.
Control
If big names are putting out movies/music on the internet it would become the norm, people would be used to it. Total control is lost. Anyone with any song, or movie would have access to the market that only the big names have now. Put up a web site, charge $5.00 for a movie/song, and any independant could become a mega star overnight. Basically anyone could grab control of the media market. The could also release a good movie about the time a crap one is produced by a big name.
They spend 1 billion producing a crap moive, and some kid with a blair witch type movie steals the limelight with a good low budget movie, they are out 1 billion.
Fear
They are scared that once anyone can produce and market media that no one will pay for their crap songs and movies anymore opting for the true talent, and entertinment
They are afraid of loosing their jobs. No more publicity guys, no more contract negotiators. The middle man is out of the loop and out of a job.
They are afraid the that kid with talent they wouldn't give a contract to will make it big , and they won't get a their cut.
They are afraid of loosing the power and control they have had over American culture will be lost, and it will be handed over to where it belongs.. in the hands of the people who are paying for it Americans.
So the solution to piracy, make a reasonable product at a reasonable price. Make it avalible to the public in their homes.
That just won't happen. They would rather criminalize entertainment, and the sharing of it in the private home, than let the people decide what media they want to pay for.