Earlier quoted context omitted.
"Piracy is a service problem" means that most people pirate because they don't have access (or difficult access) to the product/service they want. They would gladly pay for it, but they can't, or can't be hassled to. I don't know if it's been backed up by real data, but services like Steam and Spotify tend to confirm this intuition.
Spotify confirms that piracy was in fact a pricing problem. With a Spotify subscription, you get way more music for a far lower price than under the previous “buy it to hear it” model a la iTunes or CDs. And artists make way less money now from recorded music than they used to. Studios only agreed to the Spotify pricing model because the alternative was rampant file-based piracy. They figured that getting something i…
What about demand? We are certainly listening to more music than ever before, and the population is growing, but not at the 10x or 100x rate that has happened to the supply of music. There’s an upper limit of 24 hours per day listening time per person. There is already more music than it is possible to listen to in a lifetime. Soon there will be more good music than it is possible to listen to in a lifetime.