"protected content distributors are not, in general, switching to unprotected media. Instead, they're switching away from the Web entirely."

Good. This is what we want. This is what victory looks like. They are perfectly entitled to homebrew whatever weird little network they want, which is about as likely to compete with the web as Blockbuster's braindead internet video rental system was.

Eventually they'll decide they're tired of not making money and come around. Until then, they'll continue to get robbed by the professional pirate crew at YouTube, etc. Not my problem.

The only way the open Web can lose now is if it makes the deal with the snakeoil DRM devil, which works¹ just well enough to be dangerous but excludes large swaths of users, opens up gaping security holes in everything and generally makes everyone's life difficult.

¹ works=plays, not that the content protection stuff works.