Netflix might accidentally be the worst possible example you could pick for 'wouldn't exist if piracy were legal.'
Netflix built their entire streaming business model during a time when piracy was so widespread it was almost as good as legal. They succeeded precisely by proving that people would pay for good service even when free options were readily available. They're a textbook example of a business that thrives by being better than free!
Despite huge investments in enforcement, movie piracy never waned. The reason it declined? Netflix. Why is it now seeing a bit of a resurgence? Also Netflix, actually, or rather the fact that people have splintered the streaming landscape.
Here's some articles from Forbes at the time. [1] [2] [3] and an interview with the Netflix CEO [4]
People following the Netflix/piracy story at the time saw it like this: Netflix doesn't necessarily need to care if piracy is legal or not, because it removes most of the incentive to pirate. People tried a lot of things against piracy, until Netflix came along and that was the thing that actually worked. Piracy goes down where Netflix is available. I've also provided enough sources to explain why: Piracy is a service problem [3]. Netflix provides the missing service, so people don't feel like they need to pirate anymore.
In a world where piracy was fully legal, Netflix would still exist, and still drive down piracy. This is Netflix's entire reason for success!
I think you're arguing in good faith, so my response is that I think the legal-piracy world would make it very easy to download things, on par with going to YouTube, something anyone could and would do. I don't think Netflix would be the same in that world. They might well have been the premiere free movie distributors!
Kim_Bruning|1 year ago
Netflix built their entire streaming business model during a time when piracy was so widespread it was almost as good as legal. They succeeded precisely by proving that people would pay for good service even when free options were readily available. They're a textbook example of a business that thrives by being better than free!
Despite huge investments in enforcement, movie piracy never waned. The reason it declined? Netflix. Why is it now seeing a bit of a resurgence? Also Netflix, actually, or rather the fact that people have splintered the streaming landscape.
Here's some articles from Forbes at the time. [1] [2] [3] and an interview with the Netflix CEO [4]
People following the Netflix/piracy story at the time saw it like this: Netflix doesn't necessarily need to care if piracy is legal or not, because it removes most of the incentive to pirate. People tried a lot of things against piracy, until Netflix came along and that was the thing that actually worked. Piracy goes down where Netflix is available. I've also provided enough sources to explain why: Piracy is a service problem [3]. Netflix provides the missing service, so people don't feel like they need to pirate anymore.
In a world where piracy was fully legal, Netflix would still exist, and still drive down piracy. This is Netflix's entire reason for success!
[1] https://www.forbes.com/sites/matthickey/2013/05/07/netflix-w...
[2] https://www.forbes.com/sites/insertcoin/2014/01/24/whatever-...
[3] https://www.forbes.com/sites/insertcoin/2012/02/03/you-will-...
[4] https://www.stuff.tv/news/netflixs-ted-sarandos-talks-arrest... (under the heading "what are you doing to combat piracy?" )
jprete|1 year ago