they won't go down without a fight.
My guess ? DRM will survive, entertainment $$ will drop, movie stars will stop earning $20M per movie and the crazy Hollywood spending will become unsustainable, costs and wages will fall to the point where the finished product can be sold at a decent price, a lot more countries will come onstream with first-world economies, media prices will drop enough that people start buying again, and DRM will get relaxed and become more like the lock on your front door than a vault door.
they already do. every protection gets defeated sooner or later. discarding drm requires some courage, though. or some guarantee that this move will pay off. not many have tried yet, but some of them show pretty good profits in their drm-less adventure. (e.g. magnatune, amazon, apple, radiohead).
I think that, in the end, media companies will figure out that no DRM will stop a really determined hacker, and realize that they are only alienating their good customers.