The Netflix price increase has been revealed as being directly related to a region's piracy levels. This means those Netflix movies you've been enjoying may be getting more expensive because your neighbor is making copies or saving them to their computer.
Piracy is a major issue in the media, since it literally means that production companies are not getting the sales they might otherwise see. In the general public's opinion, what incentive is there to buy a movie when you can just wait for the rental disc to hit Redbox and make a copy for yourself?
The truth is that money is what motivates production companies and internet streaming services. The more money a film, TV show, or music album earns them, the more likely they are to make more. Very few consumers see piracy as a way to "test" the media before they buy, even though that might curb the production of bad movies and video games.*
The reason behind the Netflix price increase is to combat piracy, since their Chief Financial Officer David Wells claims that piracy is the streaming service's greatest competition.
"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."
It's also been revealed that several of the more popular movies may be missing in your region for the same reasons. If your neighbor has been making copies of Michael Keaton's original Batman (a film recently taken off the U.S. service), Netflix doesn't see the point in making you pay to see it. The alternative is to simply eliminate a movie that gets downloaded or copied often, according to Torrent Freak.
The Netflix price increase has proven an effective tactic, says Netflix head of content Ted Sarandos.
"The real great news is that in the piracy capitals of the world Netflix is winning. We're pushing down piracy in those markets by getting access.
"The best way to make the VPN [Virtual Private Network] issue a complete non issue is through global licensing that we're continuing to pursue with our partners."
Will Netflix continue to succeed in a market where digital pirates are already rampant? By removing the movies that they know you probably already (illegally) own and pushing up the price on streaming for unlimited access, it appears they've figured out a workable strategy.
Do you think the Netflix price increase and removal of certain Netflix movies will eventually stop piracy?
*[The Inquisitr does not condone internet piracy, as it is a crime]
[Image via ZD Net, Latest News Link]