Netflix Engages in “Legal Pirating”

by Winnie Ng

 

Not many movie addicts can say that they have never streamed a movie online. When asked why they do so, most respond that streaming online is more convenient than using other mediums, as it doesn’t require slow downloads or a bombardment of advertisements. Now, media streamer giant, Netflix, has admitted to the public that they utilize illegal piracy sites to decide which shows to buy. From this strategy, Netflix has not only become more profitable, but it has also gained more market power in the media industry. In an interview with Kelly Merryman, Netflix VP of Content Acquisition, she defended Netflix’s content purchasing techniques, as she explained how the company “looks at what does well on piracy sites” when making decisions. Netflix has been long promoting their service as a legal alternative to illegal streaming, where customers can pay $7.99 per month and gain full access to all of Netflix’s content. However, by utilizing statistics from piracy sites, Netflix has an unfair advantage over its competition and is going against its original value proposition of providing a legal service. The company claims to support ethical methods, yet it’s hypocritical actions tell otherwise.

Sources:
 
Woollacott, E. (2013, September 16). Netflix Checks Piracy Stats
Forbes. Retrieved from
http://www.forbes.com/sites/emmawoollacott/2013/09/16/netflix-checks-piracy-stats-to-help-it-decide-what-to-buy/
 
Kleinman, A. (2013, September 16). Netflix Looks at Pirating Sites to Help Decide Which Shows to Buy
The Huffington Post. Retrieved from
http://www.huffingtonpost.com/2013/09/16/netflix-pirating_n_3934325.html