I think you're making a reasonable point, but I have to disagree. I'm not sure why I should have to come up with the answers for the content providers, since there are presumably a number of people who are employed by those companies to devise a suitably profitable business model which actually attracts some paying customers. Now I do agree that in saying this I'm probably being a bit intellectually lazy, but I say it's no more lazy than those content providers who are just trying to hang on to the same old way of doing business by offering a single, undesirable course for the future (DRM everywhere) which few informed customers seem to actually want.
However, I'm going to offer a solution anyway, because I think it's an interesting discussion. I'd say that it would be better to offer streaming, on-demand content. If the network capacity isn't up to it today, it should be in a few years' time. I watch Channel 4's on-demand service, which even includes ad breaks. I could probably find a way to rip the streams and fast-forward through the adverts, or I could download the shows on BitTorrent. But all that's too much hassle, the streaming web service is convenient, so I just use that instead and watch the ads, along with many other people I know. Instead of each network having its own site, they could re-sell content to central distributors, where you could go to one site and view content from the BBC, ITV, Channel 4, Sky and everyone else. Make it free, supported with ads (for BBC content people can get it ad-free by going to the BBC site direct, there would have to be a link next to every BBC show) or have a subscription service with fewer ads or none at all. For uninterrupted films, maybe have a surcharge of a couple of quid (not a flippin' fiver to watch bloody Die Hard one time only, thankyouverymuch) which just gets added to your monthly bill.
If access to content is easy and reasonably priced, then I don't think piracy should be too much of a worry. It will always happen to some extent, but as long as they can turn a decent profit, then that's just one of those facts of life. No need for all of this protected path DRM BS then. However, I still think that DRM is crappy enough that consumers are right to reject it out of hand, without equivocation or writing the content providers' business model for them. We're the ones paying, after all.