Local piracy rates heavily influence Netflix's pricing in the region

Netflix adjusts its pricing to the local piracy rates - watch out, world.

@anthony256
Published Sat, Apr 18 2015 7:06 PM CDT   |   Updated Sat, Aug 8 2020 10:29 AM CDT

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.

Local piracy rates heavily influence Netflix's pricing in the region | TweakTown.com

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".

NEWS SOURCE:gizmodo.com

Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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