Netflix has come out on record saying that it takes in the local piracy rates of a country to determine the pricing of it subscription, so if there is a high level of pirate downloads in the country, Netflix is cheaper for you.
With over 60 million subscribers and counting, Netflix doesn't have much competition - apart from piracy. But Netflix looks at online piracy as a form of competition, which is great, as it can tune its pricing model to entice those who would otherwise download the episodes illegally. Netflix CFO David Wells has explained: "Piracy is a governor in terms of our price in high piracy markets outside the US. We wouldn't want to come out with a high price because there's a lot of piracy, so we have to compete with that".
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