Oh they're aware, but it's no where as near big as music piracy. Music is easier and sounds damn close if not identical sometimes to the cd, movies (even th best divx) look like crap by my standards. Serious movie watches care about quality and buy their dvds, and dvd sales are constantly on the rise.
If video compression like divx can ever match DVD, by then we'l have high definition stuff that is close to the original master of the movie :Q and easily distributable compression will hard maintaining quality. They don't care about size, they'll just mak bigger storage mediums that can hold more data, hundreds of gigs or terabytes if need be. What are you divx monkeys gonna do then? continue enjoying your substandard quality movies? 😛