He breached the terms of his license. That should be a civil matter at best, not criminal, as a license is basically a contract.
He may have caused loss (i.e. *some* downloaders did not buy the DVD or a cinema ticket who would otherwise have done so). OK, recover that loss from him. Once it can be quantified (and remember, 1 download!=1 lost sale).
He can't pay? Garnish his wages or use other measures open to the judge.
If the media companies want their productions dealt with like a physical product (e.g. "theft" etc) then they should also assign the rights of a physical product. e.g I can do what I want with it (cut it up, re-purpose it, whatever), I can give it away, it can be inherited and so on.
At the moment they want license terms in their favour (no copying, no format shifting etc) but product terms when it suits them ("theft", jail etc). They are trying to have it both ways and are getting away with it for now - this is not something that can continue. Our culture will eventually suffer, innovation will suffer, economies will suffer.
The biggest threat to the digital economy is not the license-breachers, it's the corporate trying to legally entrench their fiefdoms and create barriers to free-trade and innovation. These are the same morons who think the Internet should have been patented! My yes, what a bloody great idea that would have been! THEY are the one now benefiting from the freedom the Internet offers and they want to lock-it down.
It's so short-sighted it's like trying to monetise collaterised debt...wait a minute...