They're getting nowhere prosecuting the actual malicious piraters and so they're going after virtually defenseless college kids and IRC junkies. I don't care if you've never touched IRC in your life, but you know this isn't true. Piracy flows free for all types of media. The latest DJ mixes and music albums hit the 'Net before they're officially released. The same with computer games and software.
Movies take only a little more time.
There are sophisticated distribution and cracking groups to handle all this. There are complex distribution sites and whatnot. I am of course not privy to any of this, but you figure this is what's going on. Which makes going after kids so stupid. Kids aren't going to stop pirating.