I read this article and I agreed with it in most of its points. Hollywood has the power to snuff out movie piracy (at least as much as you can), but they don’t want to do it. If they offered movies at a lower cost for download to let people experience them in their homes like Steam does for games, it would cut a lot of that out.
The reason they don’t want to do it is that Hollywood has become comfortable (like a lot of industries) with how things are. They enjoy the price of movie tickets and the cash it brings in each year and they don’t feel that the changes to technology has to effect them. I think we’re going to see that it does though, eventually it will come down to a point where like the e-reader killed Borders, Hollywood studios will be forced to change to stay afloat.