The thing is there is still plenty of value added in going to the movies or buying a DVD. People are still willing to pay for this, at least in regards to movies - music is a different issue, as evinced by the fact that movie studios are constantly making record profits.
You've also got well established evidence of how free downloads work as a loss leader for other products in the same domain. There's a video floating around the web from Neil Gaiman detailing the success he has had with offering books for free download.
Movie studios have had at least 10 years to create a functional online marketplace and they haven't. They've only got themselves to blame. Netflix is wonderful, but what of the countries unable to access the service? iTunes is alright but it's still too expensive and doesn't have bulk buying options.
In summary there is nothing extra that needs to be added to copyright enforcement - the options are fine as they stand. The new 3 strike laws proposals aren't designed to protect new markets they're designed to prop up old businesses which aren't really in competition with the internet anyway.