Internet Piracy E3

To what extent does the Internet piracy pose a threat to the film industry

Piracy has always been always been a issue for the film industry, but now in our contemporary society, Internet piracy is the biggest the industry has ever seen. Why - what are they sacred of and how does it affect film product/reinvestment into new directors & films/risk taking - need to elaborate on your answer after all it is asking you 'to what extent IS this a threat'
The way morden technology is evolving means that any thing the film industry are doing to prevent piracy such as putting the films in stereoscopic 3D - why does this stop piracy, what else should they be doing to prevent piracy encourage audiences back into the cinema? are not working, as the technology Is being developers?? that allows people to pirate them still. People can still pirate the film from torrent websites such as pirate bay and torrent hound, these websites are seen as organised crime so they get shut down occasionally by the FBI. But it is not long before the websites are up and running again. Example - Megavideo? But look at the question - how much of a threat is this to the production, distribution & exhibition of new films - the future of cinema, people are loosing their jobs in the industry, working for less?
Piracy also make it easier for people to watch films from home, so they can watch it with there friends and family. Piracy is most common with people of younger generation. The reasons behind this is due to fact they are to young to see the films in the cinema, so they resort to piracy to watch them and they can have there friends round and make an event of it. Answer the question - this is irrelevant - Threat to future of cinema?
As piracy is organised crime, the criminals make money from this, this is one of the biggest threats for the industry, as people are making money from the pirated films the industry are not making any money's from these film, this means people stop paying to see the film, this means a decline in film profit so this is why you can only see blockbusters at cinemas now a they know they are defiantly going to make money from then, they also release the films in 3D as well to body there revenues. There is some degree of negotiating with the question here but need far greater elaboration & argument to make it stick. Quality of films? Example - the Avatar effect?
Internet piracy, has become a big problem to the industry, this mean they are losing money, and the problem with piracy is worse than it has ever been, just because of the Internet.At no point have you actually referenced any films, box office figures, cinema attendance, films that have been well known to be pirated or about the argument that this causes greater cinema literacy - investment for future director which will make & distribute their own films via the internet. Is this where film is headed - sweeding etc? is this a good thing? Do people pirate independent or low budget UK films? Is this just a problem for Hollywood?