It may be illogical for the organization, but it's certainly not for the individuals who actually comprise and run that organization. We need to keep in mind t

It may be illogical for the organization, but it's certainly not for the individuals who actually comprise and run that organization. We need to keep in mind that companies, while useful abstractions, are fundamentally just groups of people, and often suffer as a result of individual shortsightedness. I suspect that many of the people that actually comprise the RIAA's and MPAA's member companies, and many of the decision makers, are "over the hill" of their careers. They're not interested in radical change or reshaping the industry. The industry as it stands has been good to them, and they want to continue to milk that for as long as it takes so they can retire comfortably. That attitude -- both hyperconservative and with its over-valuation of short-term gains compared to long-term ones -- adequately explains many of the actions taken by the music industry in the late 90s and the film industry today. It will take a new generation of leaders in those industries for them to make the leap to new business models that will keep them profitable over the long run in the modern competitive environment.