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Pluralistic: “If buying isn’t owning, piracy isn’t stealing”
(pluralistic.net)
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There's lots they can do...
I already said, they can't compete on price. Cheaper prices will always be more than free. Same with interoperability, if you have the actual file you can run on anything. Group watching already exists.
More equal promotion of shows/movies and pay distribution don't actually help make the experience better for the consumer, that's more relying on the consumer behaving ethically and that they believe piracy is wrong. It only helps for the people who think it was only sometimes wrong, which I don't think is a huge group (although they are certainly the most vocal supporters of piracy)