That - or rather, the difficulty in "going legit" - is the real issue here.
People tend to take the path of least resistance. In the past, I've bought some TV shows off of iTunes. Also bought a few on Xbox 360 Marketplace, and a few off of Amazon's service.
You know what? The iTunes ones don't really work anymore as I decided I no longer wanted to use iTunes. The Amazon ones don't work either after I switched away from Windows. The Xbox360 purchases technically still work, but only on the Xbox which sits in my bedroom, when almost all my TV watching is done in the living room.
The bottom line is that PURCHASED media is limited, crippled, and aggravating crap.
Compare to the piracy route: go to Bittorrent, search. Click on the little magnet. Wait for a bit, and a regular media file shows up. Whatever quality I want. I can copy it to my Android tablet. I can stream it over to my AppleTV running XBMC. I can play it on any of my computers in the house. It just works.
Essentially, but people who actually PAY get an inferior product.
Compare to music now: I buy virtually ALL of my music, because music is generally not copy protected anymore, and the legit sources are easy to use and priced right.