O'RLY? That seems like a big jump of logic there. It's just as possible that with zero DRM they'd still do fine given playing back a movie in Netflix is far nicer than searching for the movie on some ad-ridden virus infested download site and then waiting several minutes to hours for it to be available.
The point of DRM isn't to make it impossible for some people to copy the content. It's to make it inconvenient for ordinary people to copy the content. That's what the big problem with Napster was (after all, people have been copying content on Usenet since the dawn of time).
In the long run, content producers will survive because the general purpose PC will be marginalized as a platform. The future is not people watching torrent-ed rips of movies on their laptops, it's people watching Netflix and similar services on their Apple TVs and iPads. At that point it doesn't matter if the content is encrypted or not, since it won't be convenient for your typical user to watch a ripped copy.
I would argue that the content producers will survive in spite of the fact that they lose the battle to create an entirely hands off encrypted media path from the website to your viewing device.
They will survive because they make their content easy to buy. They will survive /well/ if they make their content easy to buy and to license.
Such programs are already available and are quite user-friendly.