Cant find the link to the report, but I read that with services like Netflix & Itunes/Amazon etc....people are now using the legal way to get their contents more & more...& that the piracy is down.
comfortably_numb put it right. When companies make it hard to get content, or to do what they want with said content, that is when people start pirating. People will tolerate ads and paying for content when it's easy for them. Here's a good example. AMC's the Walking Dead. They are great to put older seasons on Netflix, which is great!!!! But what about current season? You can't even watch it on their website. If I missed an episode I would be glad to watch ads to see it, but it's not even on their website, so how do I watch it? I have to pirate it. New movies on blu-ray, many come with a digital copy. but that digital copy is so locked down and copy protected that You can't use it where ever you want. Lets say I have an xbox, PS3, apple TV, android table, ipad and iphone. If the digital copy is from iTunes, great, iPad, Iphone and apple TV will play it. The rest won't. If it's from ultraviolet, xbox, ps3 and a few others will play it, but not the apple TV. And different movies use different companies, so if you build a library of 300+ movies, and they are all in different services, you loose it real quick real fast, so, why not download a copy from the torrents. That one copy will play on all devices. This is what the music industry learned and why now when you buy music from iTunes, Amazon, Zune, it is unprotected MP3's, and you can play them on ANYTHING you want.
When you lock things down is where piracy starts to take over. Locking things down can take the form of not letting people consume your content for what ever reason (like latest episodes of The Walking Dead), or making it where that content can't be played on any device the consumer has. If everyone has apple devices, Mac's, Apple TV, iPad's, iPhones and iPods, then iTunes is GREAT for movies and TV shows. You buy them there, you can watch them on all your devices. Now, just as soon as the wife or one of the kids likes an Android tablet more than an iPad, now iTunes sucks because that one person can't watch that content.