Movie Industry Is WAY Out Of Touch With Reality

I am literally astounded how brain dead the movie industry is. How in the world is this a good idea for consumers?
The first phase of "disc-to-digital," Tsujihara said, will let DVD owners take their discs into stores that will handle the digital conversion. Later on, Internet retailers like Amazon.com will email customers to offer digital copies of DVDs they previously bought. Eventually, consumers will be able to put DVDs into PCs or certain Blu-ray players that will upload a copy, similar to the way people turn music CDs into MP3 files.