HMV

*Download music-pay
*Download music-pirate
*Download Film-pay
*Download Film-pirate
*Pirate music CD
*Pirate Film DVD
*Rip n copy CD's
*Rip n Copy DVD's (This is now so easy, many people just make a copy of every film they rent)
*Unlimited free downloading, already being muted by the music industry.

The new protection on "new format" DVD's has been hacked just months after it was launched.

Its not just single threat but multiple threat to the copying of any digital format. You then add in the attack on all price points by the supermarkets and online retailers and you have a position that simply can not be defended by the specialist music/film chains.
If their margins are under terminal attack but their cost bases are fixed then something has to give. The problem is that sector consolidation will not help, it will not remove the threats.
Its easy to say "but they will sell something else instead"....but what?
There are already a number of chains like Woolworths, WH Smiths trying to find a new role/identity for themselves, in the most part unsuccesfully.