The good thing about offering legal downloads is that many people will pay to enjoy a top quality download, so that they can enjoy it on their home equipment. They might be able to download a pirated version of a film, but it could be a low bitrate, or a camcorder job - that nobody would play on their home cinema set up. I think people no longer just accept poor quality as they did in the old days of ropey VHS recordings or even Video CDs (ahead of DVDs and Blu-ray).
Ironically, you can get better quality illegal downloads than going the legal route as has been my own experience. That doesn't make sense, which is half the problem.
People still go to the cinema, despite the high price for a ticket (and even more for food/drink) because it's a night out - and you get to see a movie on a bigger screen than you have at home. You get better sound and 3D is still better in a dark theatre, than at home in the vast majority of cases. Oh, and you can see a film quicker.
So, I am not sure what the film industry has to worry about if it wakes up. The music industry seems to have realised that big names will get people to go to gigs and buy merchandise, so to a degree many big name artists tolerate piracy (and some even seem to endorse it).
I guess the victims are the smaller artists and movie producers, who wouldn't get a look in - but I do think that in this age of social media/sharing, people actually do seem keen to seek out something new. In many respects, it's 'cooler' to find something new - so it needn't be as big a problem because you will be found if you're any good.
People pay £50 or more a month for a Sky or Virgin TV subscription, or £7 for Netflix, £10 for Spotify - so why wouldn't you just create an 'all-you-can-eat' package for £xx per month and have done with? Even the current system of having individual TV channels may one day disappear, as people get to just watch what they want and never flick through channel guides - they just search for what they want (clearly you'd still have a way to highlight and showcase things) and go by recommendations from friends.
Again, there's the risk of how it affects the production of shows with a smaller audience, but I am sure that can be addressed. In some respects, I feel that rather than risk not being carried by a channel - or axed before the second season despite good figures overseas, having the ability to have your show seen by everyone, anywhere, might ensure you still have a big enough audience to keep things in production. Chances are, more good shows would survive!