They're like any other industry, struggling in an increasingly digital, on-demand world and competing with 'free' YouTube entertainment. There is no quick fix here. Its a supertanker that takes ages to correct course. People need to vote with their eyeballs and ears. Folks need to take some personal hits and avoid popular big-studio content. Its hard, if not impossible to make an amicable deal when only one side has to compromise.
Unfortunately abstaining from consuming their products (as I generally do these days) doesn't render me immune to the legislative fallout of their dying thrashes.