Piracy is not as nice for average people. It requires effort many won't want to put in to discover what they want (and not in a shitty quality), and then managing and accessing that which you found takes a lot of effort as well to set up in a manner as easily accessed as a Netflix app.
Most people can't/won't bother wasting their time and effort. They'll just pay for a service for the convenience. And before people interject with their anecdotes, convenience is subjective.
Honestly in my younger years I had the time to hunt around for the right streams, rips, subtitle files etc, but it does take time and effort. For the price of a few sandwiches or a handful of coffees I don't have to spend the time doing that anymore.
What's annoying is that it's not a single subscription anymore, it's 4-5 subscriptions which really adds up over the month.
I brought an DSLR to my office which caught the attention of some of my younger peers. They complained that the screen was not working. I was like "What did you guys do in 2 min? How did you mess it up?"
Then they said "no no, the touch screen isn't working". I'm like "this isn't a touch screen device. You have to press buttons". They were mildly annoyed by that. I suspect this is the fault of iPhones and Android.
Dumb down technology as much as possible but make people dependent on your ecosystem. Don't let users repair it. Keep it closed-source. No one-time-fee. Everything should be a subscription.
I suspected Netflix to lose sub counts for two years after they enacted their 'No Account Sharing (outside the household).' policy. But it seems that they have been able to bounce back quite quickly, compared to my guess.