It's simple math..
150,000,000 downloads at $ 0.25 + 10,000 illegal downloads @ $0 = $37,500,000
7,500,000 downloads at $ 5.00 + 142,500,000 illegal downloads @ $0 = $37,500,000
The end result is the same, the only difference is the amount of "criminals" that were created.
The problem is they see that simple math and say, "yeah, but if we sell those 150 million d/l at $5 we would make a lot more money." the reality is they won't and can't so all they are doing is forcing people into illegal distribution methods to appease their media wants. The whole "stealing is wrong" attitude is childish at best, we are not talking about finite objects being moved around, we are talking about ideas, and ideas will always spread and get copied. The most they can hope for is to find a price that people will pay for something that they could get for free if they just used a Tivo. For the "people should be paid" crowd, a TV show's production costs are paid for by the network and the commercials sold on that network when it airs. The value of that media after it airs is icing on the cake, they can set any value they wish, but people will only ever pay what they think is fair.