This article is an example of research done in a very surface manner, and where pre-judgments were decided on and the facts bent to meet the judgement.
They control piracy by keeping costs low and pricing at a level that makes it uneconomical to pirate. That's it.
Make really crappy movies and befriend criminals? Maybe Hollywood should just quit while they're ahead.
or make profits through sales of movie tickets by giving a better theater experience (air conditioning vs. no air conditioning) Some of the movies are already doing that with IMAX and 3d technology.