Lock the catflap, but leave the door open
I can appreciate the film industry doesn't want people making illicit copies of it's sequels, prequels, remakes, derivative works and any actual original films that it may make. However, surely the biggest hole in the "we mustn't let customers copy films" strategy is letting people have the DVDs and Bluray discs in their houses, while never knowing what other media copying equipment they may have?
Looking at the Lovefilm rental offerings, it seems that the average punter still has far greater access to the physical media than they do to downloaded material (3 discs per month, compared to 2 hours of download time) and therefore this represents a much bigger threat/opportunity for naughty people to indulge in a spot of copying than trying to secure the online viewing process?
But then again, this is the film industry we're talking about so it's futile to expect rational thought or a considered strategy from them.