Piracy is definitely a problem for Hollywood and is becoming worse and worse of an issue. There are so many individuals out there who would never dream of stealing property, cars, or wallets, but have no problem illegally downloading movies. This takes money away from the studio, to the actors, to the camera people and is unacceptable.
Yes, piracy is a problem, but only because Hollywood and entertainment companies fail to acknowledge that their business models must adapt to digital media and the internet. If Hollywood would start doing things like premieres streaming online for a small fee or ongoing streaming subscriptions like Netflix or Spotify they would be in fine shape.
If some gazillion makes a song, and somebody pirates this song for free, it hurts nobody. But the government, instead of focusing on a space program so we can go to another planet and not have overpopulation problems, decided to put almost all their efforts into stopping people from getting free stuff. If you pirate say, an indie film, then it's wrong. Those are people who depend on that film for their whole life, and aren't people like George Lucas who can cough and make a trillion dollars. Online piracy is like the marijuana thing. People spend way to much time whining about something that when you think about it, just makes life better.
Hollywood is making too much out of the whole piracy issue. The entertainment industry will not be going under anytime soon, and so long as people are not actually selling pirated downloads, then it's all good. A lot of times, people use downloads to try something out before buying something. In short, it's a good thing for honest consumers.
Piracy is not really a problem for Hollywood at all. Do you really think that the people who are downloading all these movies and songs would actually go out and buy them if they couldn't pirate them?
I'll tell you what, I seriously doubt that the vast majority of them would do so. Also, it only really becomes a problem when you start losing vast amounts of money off it. The truth is that there's no way to know just how much money they've actually lost, if they've lost any, because of pirating.
In any case, they want to make such a big deal over pirating, but they're still making millions of dollars every year. Cry me a river.