Is Piracy a Good Thing?

And to those in the know, this might not sound all that outlandish.

Consider the effect Moser Baer has had on video piracy, for example. By lowering prices significantly for most movies, whether in VCD or in DVD format, Moser Baer has effectively subdued video piracy. It has also forced its competitors to reduce prices - and we, the consumers, have gained.

Is there a new distribution model waiting to be discovered for the publishing industry? It is not without it's shares of problems either.

And if so, what should that new distribution model look like?