I'm not so sure about this. If a company knows they have massive piracy, they will concentrate on fighting it and it will take money and resources away from potentially better content. Real competition is what spurs innovation. Piracy is not competition.

I also don't see how innovating will even help (which leads me to believe that the examples he used got more viewers based on other factors). If the content can be pirated, your new innovations will then also be pirated.