Like it has happened with Netflix, or with Spotify, and even YouTube (which used to be a major illegal streaming website, before signing partnerships with most of the music majors).
Users who don't have money would continue to do piracy anyway, and the others pick convenience.
In few countries (Japan, France, Slovenia, etc) it's even mandatory to fund the public TV.
-> If you own a screen, even just a computer, they consider you may be able to watch TV with it
-> Instead, you could decide to allocate this money to a private streaming platform (12 EUR / month for France!)
(it's a plague to be forced to fund TV shows you never watch, so better allocate somewhere else)
Regarding the Italians, I understand in some ways why they decided to block the IPs.
The host of the mirror of the content (Cloudflare) doesn't do what they ask, and they are +/- out of the Italian jurisdiction so one of the most reasonable solution they could do was to block the most specific host they could find.
The most likely action is that Cloudflare is going to migrate:
1) legit customers to other IPs
2) high-risk customers to specific batches of IPs
and then this is going to resolve the side-effects.