This article is written on the assumption that if someone can get it free, they won't pay. I find that truly hard to believe. The piracy demographic is usually limited to two groups- people who believe they are beating the system, and people who don't know they're hurting the system.
I think the attitude of the company plays a big role. For instance, music companies won't fund music unless it is guaranteed to produce insane profits. If people know that the company is offering good services at intentionally fair prices, they will be more willing to not cheat the system.
Look at Louis C.K.:
I'm a huge fan of him so I would have bought anyway, but since he cut the cost down to $5, I think many people bought simply because they believed the price was worth the content.
I think piracy is a result of a disconnect between users and creators. The more middle men there are, the less people will care about the people involved. When the writer is appealing to you that hey, please don't steal from me, more people will have a heart about it.
Actually there are a large number of groups within the piracy label. That's part of the problem because too many want to ignore that fact and pigeonhole all those groups into the same "lost sales" bucket. That's why such people usually have problems with addressing piracy and how to properly prevent it, or at least soften its impact.