To see how Warner looks at the situation, let's have them speak for themselves. According to the WSJ:
"We've always known peer-to-peer technology represents a huge opportunity for us," said Kevin Tsujihara, president of Warner Bros.' home entertainment group. "If we can convert 5%, 10%, 15% of those [illegal peer-to-peer] users to become legitimate users of our product, it can have a significant impact on our industry and Warner Bros."
Prices haven't yet been determined, but they could be less than physical DVDs. "We're working with a user base that is accustomed to not paying for content," said Ashwin Navin, president and co-founder of BitTorrent, who says TV shows might sell for as little as $1.