The entertainment industry has to offer a compelling alternative to file-sharing services such as Kazaa or Limewire in order to stop online digital piracy, Real Networks CEO Rob Glaser has told the BBC.

Glaser claims that Real's success has shown it's possible to convince people to pay for music and videos. The company has 900,000 subscribers paying an average $10 per month for content, the report claims.

Glaser is highly critical of the 'close them down' approach employed by the industry so far: "If you just shut services down, like shutting down Napster, others will pop up unless you offer a commercial alternative."

He believes that digital-rights technology has reached a point at which it can prevent online piracy, but cautions that companies concerned should be careful in applying it: "If they are too restrictive consumers will give up or go back to the pirate sites."

Glaser believes the trend to digital distribution of content is unstoppable, the report concludes.