This brings back memories of the music industry claiming that home taping (recording music from the radio onto cassette tape) would kill the music industry.
Curiously enough, it didn't. This was in the 1970s.
Same goes for the relatively small amount of people downloading films illegally - it won't harm the industry one jot, the main issue is one of control, ie the mega bucks chief execs don't like people watching films when they haven't given said people 'permission' to do so.