The problem with the movie industry these days is that they are concerned on making a profit and distributing movies that will maximize their profits. So these movies we see these days are a very broad range for all audiences, so why should you have to pay for something you may think looks good but you end up hating? For example, the previews of movies shown on TV are the best parts of the movies sometimes and then when you get to actually go see the movie because you though it would be good, you end up seeing its not. Then you think about the $11 plus you just spent that was a waste of time and money.
If you were given the choice to view the movie for free you wouldn't feel this way, because even if you didn't like it you didn't waste your hard earned money on it. I also think that most people who really do enjoy the movie's they have seen and not paid for they would buy on DVD because they enjoyed it. So the movie companies would be getting paid either way, but they want to have that double pay in case you do like it and then buy it on DVD.
An article from ehow.com explains more about the history of illegally downloaded movies, its misconceptions and potentials for the illegal downloads. The article makes a good point about saying the movie companies now came up with Hulu and other sites like that to see shows and movies for free. This would not have happened if downloading movies had not been done. The exact words are "As more movie studios and the MPAA itself begin to accept the fact that downloading movies (be it in a legal or illegal fashion) is not going away, they've begun to embrace the Internet as a legitimate means to distribute product. For example, certain studios have begun to offer online "Video on Demand" services where you can download a new release for a limited time for a certain amount of money to be watched in the comfort of your own home." The link for this article is http://www.ehow.com/about_4577008_downloading-movies.html
So basically, without the downloading and sharing of content some services that are now very popular such as Netflix may never have been created. Although in order for the movies to compete with the public now and all the connections we have with each other. They are forced to create new services and ways to distribute their products if they want to make a profit. Which is actually a good thing because it gives the public more options and makes it easier for us to view movies. So downloading movies legally or illegally is a good thing and a freedom the public should be able to have so we can make our own decisions with no consequences.