But internet bandwidth will increase rapidly, I predict that within five years high-resolution video will be available on the net, that kind of bandwidth means that books, records, and movies can be sent from one person to another without degradation. When that happens, traffic from individuals will probably begin to dominate the internet gradually reducing smut content to under ten percent. That's the good news. This will make copyright law completely meaningless. Policing these violations of copyright will be impossible.
Encryption exists now and is necessary for commerce.
With encryption no one will be able to identify illegal content on the fly. With the demise of copyright many recording companies and some publishing companies will go under. It will put movie producers under much strain. I predict a big increase in the cost of first run movies at the movie theater, because movie producers are going to have to make their money on the first run of a movie. Newspapers and magazines will probably still thrive on the internet, albeit in an altered form, because the rapid turnaround of the information that news publishers provide does not allow for individuals to copy things fast enough for the demand.