I mean, do they want the entertainment industry to be hated and to be destroyed fully and utterly? People will merely resort to torrenting and such. This will make the consumer LESS inclined to pay/watch anything.

At this point you're going to have a hot potato in your hands. They are making bread hard to come by, and circuses not fun (or unaffordable). And we know all too well what happens when big crowds with no food or entertainment come in, they become...Gamers.