Spotify only came to exist because of the massive piracy problems of MP3 - it was all available there for sale, but people wouldn't pay.
Spotify just provides a model that will work in the age of privacy, aka 'next to zero pricing' aka 'ad supported unlimited streaming' which sucked the money out of the business.
Consider if all films had to try the 'Spotify model' which is to say it's all free with a few ads, the industry would be wiped out.
This is 100% about a game of laws, DRM, 'accessibility' and price.
'Piracy' is absolutely unnecessary for the market to operate effectively, the evidence for that is all around you: physical goods can generally not be pirated! How does the 'economy' work for your Milk and Cereal producers? Just fine.
"if you actually care for the customers, no pirate app/website can compete with you. "
Again, a fallacy, Netflix provides a great service, they already face 'piracy' of people sharing logins, and if those movies were available at 'piratedmovies.com' without any IP laws etc. it'd be the #1 site the the world, bigger than Google, the UI would be irrelevant.
You could make some arguments about broadcast TV, which is abysmal, and the ultra high prices for sports these days when some people just want to watch a game or two, but for most media it's very simple: people don't want to pay.