Is piracy on the rise? That seems like a difficult thing to reliably track.
FWIW I can't say I have noticed any radical increase in popularity. The number of Leechers on the most popular piratebay torrents are only in the 100s so I assume it's very niche. I suspect that "playing an .mkv file" is already too technical/clunky for much of the public compared to using streaming app. Let alone setting up a seedbox and media server behind a VPN or whatever for the best experience.