Note: I do not defend or condone piracy. I think it's generally wrong, but I do understand why it exists;
I think it's also a matter of accessibility.
1. There is simply no legal alternative to Torrent-sites with the same range of content, at the same "same-site"-convenience and instant gratification of a download. Nomatter what price the consumer is willing to pay.
2. For anyone interested in video-content, compatibility with the media-center is key. Due to various DRM-mechanisms and special-delivery-methods of legal alternatives, formats from piracy sources are usually more compatible and "just works".
3. Geographical barriers limit the options in large parts of the world. Outside US, you just cannot get Hulu, and many other ad-driven or otherwise funded source, nomatter what you pay.
4. Release schedules. Much of the Hollywood media (TV and Movies) reaches parts of the World outside US slightly, or sometimes much later than the US premiere. Meanwhile, non-US citizens cannot conveniently access it without resorting to piracy, irregardless of willingness to pay.
While some will never accept any price, I think many of the current pirates wouldn't mind paying (many already pay for anonymity VPN services), if the 4 points above were reasonably addressed.
Supporting Example; Spotify. Before Spotify, a lot of my friends downloaded almost all music from pirate sources, even music they had already purchased. Downloading was simpler than ripping the CD, and you got it in non-DRM format. After Spotify, I hardly ever hear about anyone download pirated music. It's not worth it, since there's already a convenient legal way to get to most music anyways. In Sweden, most of music piracy is gone after Spotify. Many is satisfied with ad-driven Spotify, some purchase it, while some are still trying to get rid of the ads, equivalent of pirating it. Unfortunately, Spotify suffers from problem #3 and is not accessible throughout the world.