A blog I found about Netflix was quite a shock to me. In Maclean’s Business Blog, Nick revealed how Netflix, the biggest provider for movies and television shows online, knows which TV shows and movies its subscribers are dying to watch— by tracking piracy sites to decide which content to purchase.

Opposite to Nick’s view, I believe it is a smart strategy for Netflix to track piracy sites to decide what to add to its online streaming service. Buying content on popular movies and televisions shows is a fundamental strategy for Netflix. As we have talked about in COMM 101, this strategy allows the company to know what to expect from the customers. It is of the best interest for the company to invest their money before they know the qualities of the products. And the most direct and accurate way is to check customers’ view through the torrent sites.

In addition, the service Netflix offer can solve  piracy problems. As was said by Netflix’s ted Sarando, “the best way to combat piracy isn’t legislatively or criminally but by giving good options.” (Stuff (May.1st, 2013)). Since people are provided with a more convenient way of watching the shows on Netflix, they will chose Netflix over the torrent sites, which are illegal and has lower image quality.

Links:

Maclean’s Business Blog (Oct.10th, 2013) How Netflix knows who wants to watch what

BBC News (Sept.16th, 2013) Netflix studies piracy sites to decide what to buy

Stuff (May.1st, 2013) Netflix’s Ted Sarandos talks Arrested Development, 4K and reviving old shows