> Users don't search various services looking for a specific piece of content
This is a very black and white statement, and as such I can directly say it is wrong because I do this.
If you meant "most users", I'd like to see what the breakdown is. Even if "most" is true, if a significant portion don't, then a significant portion has an incentive to pirate because streaming services don't fit their use case.
> they usually pull up to follow what they were watching previously or to browse a catalog,
Following what they were watching previously is looking for a specific piece of content...
It's a fairly simple case to solve, but it also breaks when the streaming service you're subscribed to no longer licenses the show you were watching--again, going back to the problem of needing multiple streaming services to gain access to all content.
> If you want the opposite of streaming, look at movie theaters. They don't compete on content availability
Huh? Yes they do. Maybe at one time people went to the movies and just saw whatever was playing, but now people look up what's showing online, and if there isn't anything they want to see, they don't go. It would be inconvenient not to, because you might show up at a time when no movies are starting and have to wait.
> - yet the diversity of content is down, barrier to entry is high, and prices have been rising for years.
There are a lot of confounding factors here.