Given how crappy a lot of "official' upsampling and other AI slop is and other batch-processing errors, aspect ratio changes ruining editing, and IP licensing making the music vanish, pirated media is frequently simply better quality.
But their big problem is reinventing all the cable shenanigans people hate without the natural monopoly to enforce it. When you run a wire to someone's house, there's lock-in. Streaming removes that "loyalty'. Now add in all the constant media swapping that means you can't count on things staying in the catalog, and there's no reason to want to use any of them, other than convenience.
And my storage server is a lot more convenient than any offer I've seen from the streamers.