There is a second set of the population that will never pay for media, or at least not more than very trivial amounts. Either because of lack of ability to pay, not thinking it's worth it, or not believing there is anything wrong with piracy.
Then the is the third group that will happily pay for content when it is reasonably priced and, perhaps most importantly, easy and convenient. If it's too expensive or too difficult/annoying, they will pirate.
The size of this third group dictates where the equilibrium is. If it's very small, then media will always converge in the cable style maximum extraction. But if that second group is large, then the cable model might lose more money than it gains by pushing consumers towards piracy.