Let's be practical about this. The idea that DVDs will destroy Hollywood's movie industry is simply nonsense. Movies, like almost all other industries in the enconomy, are driven by supply and demand dynamics. If anything, the demand for entertainment is
increasing not decreasing. So even if consumers decide that the DVD experience is superior to that of theaters (which is questionable), movie studios will simply raise the price of DVDs until they restore their profit balance. So rather than paying $30 or $40 for a movie we'll be paying $60 or $80. This may actually drive people back to theaters thereby restoring the equilibrium. Since most people don't watch the movies they buy more than once or twice (unless they are exceptionally good) most consumers would be less willing to fork over top dollar for something that is substantially less expensive at a theater. The real reason DVDs are causing a decrease in theater profits is because the cost of buying a DVD for four people (ie. a typicaly family) is equally or less expensive on a per person basis than at theaters.
If worst comes to worst, the outrageous salaries paid to top-billed actors in movies will decline allowing more cost effective movies to be produced. If anything, actors should be paid a moderate salary followed by a percentage of the profits of the movie. If the movie isn't successful then tough luck, if it is then everyone is happy.
As for the piracy issue, most DVDs are bought through large consumer outlet stores like Sam Goody, MediaPlay, Walmart, etc. I have yet to hear that any of these chains is selling pirated DVDs. Pirated DVDs are being bought by people who would rather not own the movie than pay for buying a legitimate DVD. And if piracy were ever to become that big of a deal, then in the age of the ubiquitous Internet, all DVD players will have a modem that would be used to connect to the movie studios server to download a decryption key to decode the movie for playback.
