Louis C.K. knew the risks in making his product available for download, so he simply leveled with his audience. He told them he put up his own money, and asked them to support him by not pirating. He was upfront about what he spent to make the show, and told them he wanted it to be accessible to his fans. His audience appreciated it, and rewarded him with their purchases.
But out in the outliers – in the niches – there are active, eager, willing audiences who are looking for quality content. There’s a place for good movies and entertaining media. It’s just not going to come from the mainstream. In my opinion, that’s good news for content-creation, as a whole, and good news for consumers.