I worked for 20 years in one of the legal departments of one of the major movie studios (we acquired rights; other legal departments dealt with defending them).
You're right, they didn't spend time or money going after the small fry, because it didn't make sense, although, legally, they probably had to make the occasional attempt because it is required in order to prevent the loss of all their rights in the material. If you know someone is infringing, you have to try and stop them or your rights are forfeit.
They pay a lot of money to buy rights from writers, publishers, actors, and musicians, etc. The problem, now, is digital piracy is too easy, and people steal these properties because they don't see it as stealing.
This is why there are many fewer movies out, fewer "risky" or innovative movies, and fewer new bands signed, etc. This is why we have nothing but reality shows on TV. All the money their hits used to make was channeled into other projects, but now, they only have a few days before the pirates have stolen everything.
Someday, maybe the movie studios will be gone, and everything will be made in your backyard, and other people will repost your stuff and make money from it, but in the meantime, there's no doubt that the studios are genuinely desperate to stop the bleeding.
What do you think? http://consequeries.com/
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