Piracy is a really weird phenomenon. I think in regard to music, Limewire and Napster were just the first ones to jump on digital distribution. People wanted to be able to download individual songs that they liked. For some, it obviously had to do with price, but for a lot of people it was just a convenience thing. There's a reason why iTunes is so huge.
The same goes for movies. People want to be able to stream movies online. The price isn't a huge issue. This is why Netflix is so popular. As they continue to expand their library, I think we'll see a lot of people that were pirating move over to Netflix.
Video games too! I used to buy video games once in a while, but I pirated a lot of them. I still usually download a game before I buy it to make sure it works, but with over 60 games on my steam account, I don't think many people could label me as a thief. I just like to know what I'm getting myself into. That said, Steam's expanding library has made it easier to get games digitally, which is really all I wanted.
I think piracy, especially early piracy, catered to two different types of people. Those who wanted digital distribution and those who didn't want to pay. There will always be people who don't want to pay, but there's not much we can do about that. Nowadays, media is becoming more available online. I think piracy will drop (or remain level while online sales increase) as this happens.
Porn's a little bit different. I think a centralized VOD / streaming service would probably be best. AEBN is good, but I think it'd do better with a flat monthly fee for all of the content. I could be wrong.
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