Where is this? Where I live, most people don't know English nearly well enough to watch the shows without subtitles, and community created subs are very hit-and-miss, both in availability and quality.
HBO is actually now starting to enter the local cable market. Great offering: "pay a premium price to see shows your friends talked about 6 months ago at an inconvenient time". I suppose there's still a market for it, just like there's still a market for getting yesterdays news printed on dead trees...
You have to remember that the practice of pirating TV shows started about ten years ago now. That's a whole generation that grew up watching their favorite shows that way. Any time, anywhere, and for free. Try selling those people premium cable subscriptions that offer no practical advantages whatsoever.
http://en.wikipedia.org/wiki/Cuevana
My coworkers which aren't especially tech-savyy watch movies from Cuevana and similar sites, many of them get their children to configure it for them :) .
Edit: thenextweb went so far as to call it "the new Napster"
http://thenextweb.com/la/2011/11/25/is-the-argentine-online-...
and their owners have been in legal trouble several times
http://thenextweb.com/la/2012/03/13/the-noose-tightens-aroun...