He doesn't mention the overly restrictive DRM that most digital purchases come with, mostly movies and TV shows (music is getting better).
It's simply more convenient for people to pirate material that they can use hassle-free - no software compatibility hassles, bizarre hardware restrictions or archaic region coding.
As soon as someone decides to make their catalog of movies available, DRM-free, they'll reap the profits from the average consumer who just wants something simple.