Hi!

The passage simply says:
Increase in DVD Piracy=Increase in losses by Hollywood
And, a similar trend will occur the following year.

Now it is very very important to read the question carefully. The question basically has double negative, Weaken and Except. This means all the other points weaken the conclusion and one option is strengthens or is neutral or out of scope it could be anything but weaken.

The below highlighted parts in yellow strengthen the argument.

A. $500 million represents a very small fraction of overseas profits.-OUT

B. New laws and heightened international enforcement aimed at this piracy were implemented in January of this year and have been effective.-OUT

C. Even in countries where DVD piracy is widespread, theatrical first-run distribution is both very popular and profitable.-OUT

D. Last year, all films that were nominated for an Academy Award were known to have been pirated on DVD.-

E. Domestic DVD sales were sharply higher last year; in the past, strong domestic sales have been an indicator of higher international DVD sales in the following year.-OUT

The only option left is Option D. It neither strengthens the argument not weakens it. It is more on a neutral side and all the other option weakens the argument.

IMO D

Do let me know if the reasoning for the above question is wrong! I'd be happy to hear

Hope this helps