Netflix is cheaper in countries that pirate more, so that the company can compete better in places where lots of people tend to download films and TV shows.
The company — which sees the increasing popularity and complexity of piracy technology as one of its main threats — uses the amount of piracy as “a governor in terms of price”, the company’s chief financial officer, David Wells, said in an interview after its earnings announcement last week. Netflix is cheaper in Australia, where the rates of piracy are high, for instance.
It says that the policy is reducing piracy in countries that it is active in. Giving people content through Netflix’s video on demand distribution is meaning that they are moving away from downloading media through other routes, the company said.
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