Yup. It feels like "everyone" I know here in Norway has switched from pirating music to using Spotify, even my parents. In November 2010 1 million Norwegians used Spotify (and it has probably increased a lot since then) and Norway is a country of only 5 million people! Since Spotify is a Swedish service it's probably just as, if not more, popular there.

Pirating movies and software are still quite common though.