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The big difference is budget; exactly as Carlos points out. Most of the "pirates" are either broke students or consume far too much volume to be able to pay for it all. Then you have the international markets, and realistically they just can not pay for the product be it games, movies, or porn.
With a high disposable income it is far, far more expensive for me to spend time trying to locate and downloaded a pirated product verse just pull out the credit card and buy it.
Additionally I prefer higher quality products verse low quality. Would you rather watch a movie for free that was recorded with a crappy hand camera in a movie theater, or shell out $30 for the Blu Ray? I'll spend the $30.
In a world of piracy what your customers are paying for is quality & immediate availability. And that doesn't matter if your potential customer can't afford to pay anyways.
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