Everything being "free" is not the issue at all, you obviously have not been paying attention.
People actually paid money for a hard copy cam-recorded version of the flick. That really surprises me, and it should cause the movie industry to question some very basic assumptions people make.
The film industry no long has the option of being able to control and restrict access to it's products; at one time they could create a product and say this is what it costs, in this/these forms, and if you want it you have to go here or here to get it in only this/these forms for this price.
But people don't care if the flick is in ultra high res on DVD or IMAX, they just want to watch it at their own leisure on their PC monitor or whatever, they don't even care if the quality of it is really great, and when it comes down to paying what the industry demands for it in just the form they've made available, or simply watching a less high quality version of it for a reduced price or for free, it is obvious what people are going to do.
The obvious solution would be for the industry to grow up and spend less money on attorneys, and more effort on making their product available in all the forms potential customers want it in for a reasonable price for those forms.
I've yet to see any proof the music or film industries have lost a dime from the enormous amount of free PR their products get. Quite the contrary. Given this, THAT is why people here find the prosecution of people and the long prison sentences outright ineffectual and offensive. Because it serves no purpose. You are not deterring anybody; the imprisonment of people is just costing us all a fortune. Which would be OK if it made any discernible difference in pirating materials - which it does not.
In essence, the state is being used to persecute the public and to steal FROM the public in order to permit industries to continue to fail to produce and distribute the products they have efficiently in the forms that people want.
So you just keep missing the point yourself and keep clinging to the idea that this is a simple matter of criminal activity for profit. You're a sucker for sticking-up for a system set-up to put people in prison for years and paying for their imprisonment just to make some scumbag lawyers rich.