It's a further victory for the cable cutters (especially if they don't like sports, since Disney's ESPN does not seem to be offering content as part of the deal) and a smart move by Disney to align itself with an established quality provider.
Will this turn back the tide of piracy ? Well, streaming services have the advantage of being instantaneous and Hulu is (currently) free, so why bother wait ages for downloads ?
It also begs the question, will Hulu become a wholesaler ? Their relationship with the cable companies must be strained, but it does also offer a ready means for the likes of Comcast to take a white labelled service with all Hulu content. However, you have to wonder why bother when all of that content's available anyway, and it would dilute Hulu's ad sales efforts.