It's not the FREE downloads on the first place but the Downloads in general, I mean subscription, PPD and VOD.
On Mach2 website says Click here "to print the order form and fax to..." WTF? Nobody's using fax anymore!
No shopping cart on Definace website either not to mention VOD or subscription. Only a phone number... Thanks. Smash pictures: the same.
They're struggling because they can't keep up with the changes, not because they are extensively pirated. If you have a look on a torrent toplist, the first 10 titles will be Teravision, Evil Angel, etc. (apart from a few home and amateur flicks) not these. They are going down because their product or business model is crap, nothing else.
I don't say piracy is not a big issue, it is, but so far piracy is not the reason to go down to any company, because the more you sell the more will be pirated, that's equation and vice versa, if your titles are the top torrents, that means you must sell a lot
But true, the business is getting tougher, the market is overflooded, the Dollar is crap, etc. I don't think you'll see a new Larry Flynt or Hef or Bert Milton in the near future (I mean someone who starts from scrap and becomes a billionaire from this business).