This solution clearly does not actually work. Musicians make pittances off of streaming in comparison to the money they made with physical media. Hollywood has seen strikes and streaming services continually raise prices.
Musicians make very little off physical media - it's merchandise that brings the money in.
With piracy they make nothing, so they'd still make more than they make today. Almost all of the pirates are people trying to watch from outside the coverage area. It's not like stopping piracy gets those people to pay.
They just stop watching.