The article ends with the author suggesting the studios get together and create a single source for digitial delivery to make it easy for the consumers. Well, it turns out the studios are doing that, it's called DECE and the first step is a suite of DRMs and a rights locker called Ultraviolet. Unfortunately, it's a huge consortium that will have tremendous trouble actually getting anything done. It's also primarily aimed at supporting digital purchases to supplement the ailing DVD market instead of just biting the bullet and recognizing that rental and subscription are what most consumers want. Still, it's a serious effort despite it's flaws, so it's not fair to say the industry isn't taking the changes of the market seriously.
A much more difficult problem is undoing the years and years of distribution rights deals and complex availability windows that plague any improvement in the market. These deals lock up content, creating exclusive windows for entrenched players and hamper true innovation. Unfortunately, solving the rights windows issue, which includes not only time but also geographic limits, is a much more difficult problem to solve with fewer incentives on incumbents to change. If they don't, the whole industry will suffer, but I don't see this issue being solved any time soon.
A much more difficult problem is undoing the years and years of distribution rights deals and complex availability windows that plague any improvement in the market. These deals lock up content, creating exclusive windows for entrenched players and hamper true innovation. Unfortunately, solving the rights windows issue, which includes not only time but also geographic limits, is a much more difficult problem to solve with fewer incentives on incumbents to change. If they don't, the whole industry will suffer, but I don't see this issue being solved any time soon.