That may be the case for Hollywood blockbuster movies but it’s not true for TV shows, YouTube videos, or Twitch streams. People would much rather pay Netflix a small monthly fee for unlimited access to all the TV shows they watch than hunt them down online. Nobody at all bothers to download YouTube videos or Twitch streams since the content is free anyway.
Honestly I think even movies could work similarly if the content creators actually made them available. People go crazy for Disney+ because everything is on there for one monthly fee.
It's not hard to imagine a scenario where individual downloading is decriminalized but large-scale commercial piracy remains illegal. This would stop Netflix from serving Disney's content without a license but it wouldn't stop Joe Public from downloading Game of Thrones or what have you.
Such a regime would encourage content creators to make it more readily available so that users are willing to pay for the convenience, a la Netflix.
I imagine this taking the form of individual copying being okay while distribution is illegal. That would probably have to be regardless of scale and price/commercialization.
Honestly I think even movies could work similarly if the content creators actually made them available. People go crazy for Disney+ because everything is on there for one monthly fee.