The major reason for piracy is the lack of alternatives and archaic business models.
This lack of innovation is 100% due to the fact that there are now only 6 companies that own and run all the media in the US.
http://i.imgur.com/DBvwb.jpg
http://i.imgur.com/4wll8.jpg
These companies rely on outdated sales methods that are long past their sale by date. Kids now don't want to go and buy a cd/dvd. They want to download their media and watch it now and they can due to a large number of very dodgy websites providing what they want because the big media companies don't provide them with what they want.
The perfect example of a company doing something right is Valve in the games industry.
Valve made some software called steam that allows you to buy games and download them however many times you want.
They let you buy the latest pc games without having to worry about different countries stupid import laws but better than that they actually have innovative sales which are converting one time game pirates into actual buyers.
A long time ago you could buy any game you wanted and install it on any machine as many times as you wanted. Then over time in a bid to combat "piracy" more and more draconian Digital Rights Management systems came out until some of the latest games required you to stay online constantly to even play the game in single player mode. It got to the point that some people were having to download the pirated versions just so they could play the game that they owned.
DVD's are the same with their un-skipable ads etc and if i bought a movie on VHS/DVD i believe i have every right to download it to watch on my laptop/phone.
Treating your customer as a criminal doesn't work and steam has proved this.
A whole other argument is crazy copyright laws. I fully expect companies such as Disney to push for longer and longer laws. I doubt i'll ever see even the beginning of rock and roll entering the public domain.
Copyright was originally to promote the creation of new works but now it just seems to be to protect a few companies profits.
I say reset copyright back to 30-40 years and watch the huge innovation on people using the new public domain media from the 60's and 70's.
http://upload.wikimedia.org/wikipedia/commons/2/2f/Copyright_term.svg