Well, I rent my dvd's from a local rental store...about £2.50...or £3 for a film in the charts.
However, I know I speak for a lot of people when I say I couldn't afford to buy all the films I want to watch...and some films don't make it to DVD in this country so its not available to rent. I've downloaded Sons of Anarchy (TV series) boxsets free online because I wouldn't have been able to afford them and they're not available to rent near me...and I don't want to sign up to Love Film or anything like that.
As for "internet bills" broadband means you pay a set price per month, you're not charged per minute that you are using the internet; therefore you don't pay any more if you use the internet 10 hours a day, 7 days a week than you would if you used it for an hour a week.
It's not damaging the film industry by much, because there are huge numbers of people that still go to the cinema and buy or rent DVDs. For a film to get onto the internet, someone would have had to either pay to see the film in the cinema and record it, or buy the DVD and rip it and put it online....its no different to lending a DVD to a friend; if you lend it to a friend, they benefit by seeing the film but haven't actually paid for it.
You only have to look at how much blockbuster films rake in these days to see that Web 2.0 and the online age barely affects the film industry. As long as people can upload films, and stream them for free, they will. If it was damaging the film industry that much, authorities would be taking down all sites that allow you to stream or download