But it is an imbalance in the market, though. You just have to add the hidden costs of each alternative.

Pirating has costs: financial, legal (chances of getting caught times expected fine), and personal (hassle of hunting down the right torrent). Netflix managed to strike a balance point: you had a higher monetary price, but the legal and personal costs were now gone from the equation.

With all the new competitors, both the price and the personal cost of watching the content you like has risen. The return of people to piracy is then a previsible result of this imbalance.