I feel it is never an issue of paying royalties... If you are a musician spending 20 years developing your talent to make that album, would you want people to use your music without paying you? Who is going to pay your bills and let you make music? Similarly, as video content providers, we should understand this more than consumers.
The real question is how much is reasonable and how much RIPS/COMPASS charge that will not to be seen to be greedy. The "haves" in this world got to realise how much is too much instead of trying to squeeze money from the "have-nots" indefinitely. George Orwell's "Animal Farm" might ring a bell here.
I am not saying I know the fair amount, but if the license is say $500 or $1000 instead of $4000, maybe everyone will be more happy to pay. It's just like PC game piracy. The game makers came to the realization that they have to lower the game prices to stem out piracy, and the prices did eventually go down low enough for people to see no point with buying pirated games.
My 5 cents.