Unquestionably, electronic media is much more convenient.
What we need to figure out is a way to re-capture the concept of ownership, which was more obvious and natural with physical media. Until then, electronic media will continue to be synonymous with "free" to many people.
There have been a few studies each year, for a few years, that have all concluded that on the whole, internet pirates are actually more likely to buy.
It's also important to note that society has changed. What was once a consumer base that wanted to own and display is now a consumer base that want access now and later, in a number of ways. and why shouldn't they---when that sort of mindset is being re-enforced. Example: I personally have 4 different devices, completely by coincidence, that can access Netflix, Amazon, and slew of other digital services. and I don't even have a smart phone! Those devices were bought for other, specific purposes. But there the capability is, all the same.
One of the biggest reasons people cite for piracy, is lack of availability. As I mentioned earlier, people want to have access to stuff, now. and they also want to be able to access it the way they want. Not stilted by one or two options, due to marketing deals or some such.(example: with TV shows, there really isn't any reason why episodes can't be for sale immediately. Yet you have to wait half a year or more, for the season to be released for sale. 24 Season 7 was available on DVD and Blu-ray, the day of the finale. You could actually go and buy it and watch the Finale on Blu-ray. Not only was it made available much sooner than usual, it was available while enthusiasm for the Season was at a peak. As such, it was one of the best selling Seasons of 24, within the initial release period.)
The other reason is price or along with that, price elasticity. (Prices for digital goods often fluctuate wildly. Such that, people will pirate it now and then buy it (or something similar) when it is a later the price they are willing to pay.)
a third major reason, is being able to try before they buy. Implying that if they can't "try", they won't buy at all.
I don't think piracy is the core issue or even a core issue. Piracy has been around in various forms, for years. People used to record radio onto cassettes ALL THE TIME. It was the same mentality as now.
I can make a copy of that one awesome song I like. Same with TV and VHS. Sure, you couldn't get perfect copies, as good as owning the actual casette, VHS, and early on, CDs. But for many people, that quality is good enough. I mean a tone of people nowadays, the best speakers they own to listen to music, is the stock stereo in their cars. Most of the time, they are listening to music on their phones, through crappy computer speakers, a boombox, etc. Piracy is not the main issue.
Many companies are starting to realize that piracy has been happening, will keep happening, and probably isn't the source of their problems. Some companies have tried to prevent piracy, only to make the legit product so obtuse to use/experience, that they see backlash from the customer base.
I think a bigger, more important issue right now, is the subscription model. The idea that, for a few dollars per month, you get access to thousands of (insert content here). But how does any money get made, when products are essentially being indirectly sold, for pennies? Netflix killed half the physical rental shops, before they ever went digital. Redbox basically equates to a Netflix. That killed more shops. Now with digital: My mom probably averages about 3 seasons worth of TV shows, per month, for $7 from Netflix digital. I'm sure plenty of people have Spotify running basically all day. For a few dollars per month. Netflix' physical disc service got so popular, that a couple of years ago, a few movie/TV conglomerates forced a restriction that didn't allow Netflix access to their new releases, until a month after release. A similar restriction now applies to their digital service.
These subscription services may not offer actual ownership and with digital, they don't even offer the full quality of a physical copy. But for many people, what's available is good enough. And the low price and ease of availability wins out.
Sony is trying to do the same thing with videogames. Livestreaming games, to several types of devices. The graphics are all processed on Sony's servers, you just use your tablet or TV or whatever, as a means to display the game and control the game. If they can work out the latency issues, it's going to kill the game industry. Just like Netflix and Spotify.
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on a related note: Steam, a digital videogame service, is a double whammy that passes along the dream of digital, to the consumer. Right now, for a lot of digital outlets, prices really aren't better than physical. or not much better, at least.
With Steam, Not only do they have centralized distribution, but they only offer digital goods. So there is no cost in physical transport, such as with Netflix disc service or Redbox. There are no physical hubs or outlets. there are no manufacturing/publishing costs for the goods. It's all digital copies. Centralized storage. Distributed on the back of public networks. The costs are just the server facility, the servers themselves, and the utilities (elecricity), etc. As such, Steam can offer UNPRECEDENTED discounts. and even brand new releases are often cheaper than other outlets. Steam does more bandwidth than most countries. Much like I'm sure Netflix does. People own more games than they could hope to ever play, due to insane pricing and multiple game bundles. Games will often net more money over a 1 or 2 week Steam sale, than they would have done in a whole year, at more standard pricing.
