Sounds like I had the exact conversation with some guys from work today.
The MPAA claims it loses so much cash from people downloading movies. I disagree. The combination of the described movie experience (overpriced, sticky floors, having to show up 30 minutes early to get a seat, and loud people), the ability to have a really good home theatre, and the fact that Hollywood is producing many remakes and sequels are the reasons people are downloading movies. Yes, they're probably losing a little bit of money, but I would imagine that most of the downloaded movies are movies that people wouldn't pay for anyways.
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