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If something is cheap enough, and available easily enough, there are many people who will pay rather than go looking for pirated content.
I don't buy DVDs often; if I do they usually have to be sub-£3, and/or something that I like so much that I'll pay more for, and are bought purely on a whim during shopping trips. I don't use Netflix, because I don't sit down to passively watch something very often. If there were a service that charged a throwaway amount (such as £1) to rent a movie/tv series for a week, I'd probably use fairly frequently; £1 doesn't sound like much, but it's £1 of my money more than nothing, and throwaway pricing can attract more purchases (as Apple's app store proves).
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