The document discusses how piracy is hurting many industries, including the Indian film industry which loses up to 50% of its $1.75 billion annual revenues to piracy. Traditionally, films were distributed to theaters on physical reels which were vulnerable to piracy. Entrepreneurs in the film industry proposed adopting digital cinema to combat piracy by transmitting films electronically to theaters rather than on physical reels, eliminating the opportunity for piracy during transport and allowing for wider releases. Digital cinema also uses encryption to protect content copyrights.