Netflix sets pricing based on local piracy rates

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freitasm

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#171415 17-Apr-2015 10:40

According to Netflix sets pricing based on local piracy rates:

"Netflix says that the company is pushing down piracy in countries where illegal sharing is prevalent. Part of its strategy is to determine the price of its service based on local piracy rates, so it can better compete in places where piracy is rampant."

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NonprayingMantis

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#1286146 17-Apr-2015 11:17

so, just like virtually every business, it sets it's prices based on what they believe customers are willing to pay.

In areas where customers are already trained to be pirates and get content for free, it needs to price lower so the convenience of Netflix outweighs the cost to use.

In areas with lower piracy, it can jack up it's price because people are willing to pay more.

This is supply and demand economics 101.

(ironically, different pricing for different geographical regions is one of the major things people complain about when it comes to digital services. I wonder how people will react to this announcement?)

afe66

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#1286260 17-Apr-2015 13:23

Some would also say it just rewards bad behavior..

A

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#1286326 17-Apr-2015 14:34

I call BS on this one.

If it were true, why wouldnt NZ's netflix cost be damn near zero.
Cant have it both ways, with some claiming our movie/music piracy rate is one of the highest, yet we still pay more or less full price .

Also, you cant charge what may be a weeks wages in some countries, that would be more a driving factor in determining costs.