Check out the Baen Free Library sometime. Even if you don't want to read the books, read the letters explaining the free library. In short, making books available for free generates sales. Why that is, can be argued til the cows come home, but the fact is it works.
I reckon a few of the execs in charge of distribution should check out the webscription option at www.baen.com. Baen books is distributing books in multiple formats, with no DRM, and doing very nicely out of it, thank you very much. And the authors get better royalties from digital sales to reflect the lack of printing costs.
I see no reason this couldn't be moved into the TV/Movie industry.
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