Who says that video pirating is killing the film industry? A report has come out claiming that Avatar is the top pirated film on DVD in 2010, and that's with it's nearly $3 Billion world wide box office gross.
Were not advocating the pirating of films here mind, just pointing out that despite the increase in piracy on DVD a film can still make a substantial amount of money in box office grosses, and if a punter is going to see a movie at the cinema, they will.
Avatar is a rare case in as much as is was ground breaking and to get the full 3D effect you essentially had to go and see it at the cinema, but clearly people liked the film enough to try and get it on DVD before the official release.
Piracy has many other more terrifying motives to it than the amount of money that the film industry looses, so rather than the studios piping on about how much they loose per year lets try and tackle the organized crime that is funded by all piracy.