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

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

By Anthony Garreffa on Apr 18, 2015 07:06 pm CDT - 0 mins, 40 secs reading time

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.

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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".

Anthony Garreffa

ABOUT THE AUTHOR - Anthony Garreffa

Anthony is a long time PC enthusiast with a passion of hate for games to be built around consoles. With 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 high-end, custom-built PCs. His addiction to GPU technology is unwavering, and with next-gen NVIDIA GPUs about to launch alongside 4K 144Hz HDR G-Sync gaming monitors and BFGDs (65-inch 4K 120Hz HDR G-Sync TVs) there has never been a time to be more excited about technology.

NEWS SOURCE:gizmodo.com

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