The issue of piracy has suddenly become a zero-sum equation: If films and TV shows are still being created, there's really no problem. Nothing to see here. Move on. Hollywood has contributed to this sentiment with overreaching statements about piracy obliterating the creative industry. And to be sure, the tech industry deserves some scorn as well for their own overreactions that intellectual property laws mean the wholesale blacking out of speech and progress.
If Hollywood is going to make any inroads in the PR war the town will need to come up with a compelling reason why the average viewer should care whether piracy costs a few below-the-line workers their jobs. Hollywood is usually great at spinning a story, but this time the town stumbled.