As an unabashed movie downloader, something occurred to me as I purchased 3 DVDs from Amazon just now.
The movie industry isn't in jeopardy -- at least not in terms of consumer value. The crisis facing the movie industry is that they can no longer shovel crap like "Son of the Mask" down our throat.
Downloading movies is actually a populist pressure on the industry, pushing it to develop meaningful and quality films.
Another case in point, on more than one occasion I've told someone that I've downloaded a movie, and they say in response "Nah -- I'd rather see this in the theatre."
The fact remains that you cannot duplicate the in-theatre experience. This is an event, and one of the last vestiges of communal activity in our modern society.
If the movie industry would focus on quality, and making the in-theatre experience something memorable -- matched with the take-home experience (buying DVDs) about the love of the movie (which it has always been) -- there should be no threat to their profit margins.
I guess maybe that's why I'm changing careers into media production. Someone's gotta change it.
[Update: For an example of a movie you know I'll be seeing in the theatres -- check out MirrorMask