That's not necessarily an unfounded fear, though, is it? They're used to the kind of profit margins you can get in a world where people value a copy of one movie at $19. If that changes and suddenly copies of every movie are available all-you-can-eat for $7, those margins collapse. (Not to mention that you're splitting those seven bucks with Netflix.)
I have to think they look at how Apple managed to maneuver itself into the position of being an intermediary between most people and the music business, then look at what that did to the profit margins of the music business, and think "there but for the grace of god go I."
Oh, yeah I agree their fears aren't unfounded, but they take a really over-reactionary stance to the threat, I think.
IMO they would be better served working with companies like Netflix to figure something out that is more mutually beneficial rather than pissing away billions on half-assed alternate solutions of their own (that are designed to maintain the status quo at the expense of the obvious preference on consumers to keep things simple) like "Ultraviolet media lockers".
Of course, I'm assuming Netflix would also be a reasonable party to compromise solutions and maybe they aren't; I don't know for sure, I just know that the media guys have a very "must-destroy-at-all-costs" view of Netflix in particular.
I have to think they look at how Apple managed to maneuver itself into the position of being an intermediary between most people and the music business, then look at what that did to the profit margins of the music business, and think "there but for the grace of god go I."