No - piracy, since it always carries at least some amount of difficulty and risk, is easy to compete against. And in fact, paid services, including Netflix, have proven that over and over. All it takes is to offer dependable convenience and quality and to treat customers well. People are always willing to pay a reasonable price for that.

The problem is that piracy becomes difficult to compete against when, as Netflix is currently doing, you shift from a business model of providing good service under fair terms for a reasonable price to a business model of providing crappy service under onerous terms for too much money, because the greedy, selfish, short-sighted sacks of shit at the top want to make even more obscene amounts of money. That's the point at which piracy gains enough of an advantage to outweigh its difficulties and risks.

And when that's the case, it's pretty obvious what the real problem is.