I've heard this argument for a decade now. It still hasn't sunk into the music industry (though it is deepest there) and the efforts to create policy to prop up Hollywood have only gotten more absurd.

Believing the entrenched players are going to innovate themselves out of this situation is just silly. It will take new entrants truly disrupting the space or we will eventually have to become comfortable with SOPA-like legislation (I am leaving out true revolution. I heave no idea what it would take to get my fellow US citizens off the couch, but I don't think this is it.).