As simply as I can put this, the copyright industry (the MPAA, RIAA, the big 5 publishers, etc) used to make money off of scarcity. Someone had to be a "gatekeeper" deciding which books, music, movies, etc would be published, and then a corporation controlled the physical manufacture of goods and the distribution to retail outlets.
Digital media is "frictionless" - if one copy can be made of a digital file, everyone on the planet can have a copy. This has caused a race to the bottom, where there is no friction and every digital file can spread instantly. Money is made from the friction. Without friction, no gatekeepers are needed. No manufacturing has to happen. Before, I'd want something badly enough to pay a corporation to prepare it, package it, and sell it to me. That's no longer true.
The survival of the copyright industry is in doubt. The copyright industry has a vast back catalogue of old books, music, movies, etc which they sell to generate revenue. So if there is no friction, everyone can have an instant copy of this material, if they want it. Once that's possible, how do you make any money? You can't. You make money from friction, and there is no more friction.
The copyright industry has a lot of money. They are using the legal system to get laws passed and draconian punishments enforced to deter the race to the bottom and introduce friction again. Punishments for copyright violation are more harsh than punishments for physical crimes against other people.
Also, the copyright industry is trying to introduce artificial scarcity again using things like DRM, bandwidth caps, etc. Anything to add the friction back. You can study the recent Microsoft Office 2013 story as an example. They're trying to make Office a disposable commodity, where you buy a new copy every time you get a new computer. This is artificial scarcity. (Obviously the software itself can run on any computer. There's no friction.) Microsoft is trying to teach young people that software has to be purchased every time a computer is purchased. (Old people like me think this is silly, but then old people like me use LaTeX and they hope will eventually die off leaving only people they've trained to buy software every time a new computer is purchased.)
Contrast the copyright industry's approach to that of Amazon.com. Amazon is embracing the lack of friction. They let anyone publish for their platform, creating a race to the bottom where authors make an average of less than $500/year on their works. There's more supply than demand. And the Kindle Fire is sold at cost, creating a frictionless device with no margin - how does any other hardware manufacturer compete with a company that doesn't want to make a profit? Amazon makes its money from logistics and distribution, both digital and physical. Amazon just wants a cut of everything that moves from point A to point B.
Of course, Amazon.com consistently loses money. Part of the race to the bottom. How can any company be profitable by eliminating friction when friction is how you make money?
Another contrast is the patronage model, popularized by Kickstarter. You can pay up-front for someone to create something new that you want. If enough people want something new, then they pay ahead of time. The creator makes whatever it is, and from then on it's frictionless and spreads. The creator gets money up-front. (This model doesn't work for the copyright industry, because it has a back catalogue of old stuff.)