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Oh, as for Windows and Hollywood...
In the case of Windows, warez were useful because they provided a way to suppress free alternatives (Linux, etc). Since serious businesses won't use warez, and most new computers ship with windows, there's an upsell.
Also, by suppressing alternatives, software development for alternatives was also suppressed, which made them even less useful for the average consumer.
In the case of movies, one reason they still do well is that they are often part of a "night out". Downloading a movie is never an alternative for going to the movie theater. Another reason is that downloaded movies often simply offer relatively low quality compared to DVDs, and that they need to be burned before people can watch them the way they want to - on their television.
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