The management of Netflix has taken the decision to charge lower prices in regions where piracy levels are high. The strategy aims to control piracy.
The piracy levels in different countries have significantly started to affect the pricing strategy of the American internet media services provider, Netflix. Netflix news reported that the company has decided to charge higher prices in countries where the levels of copyright infringement are lower.
The Chief Financial Officer of the services provider, David Wells, has stated that piracy has begun to govern the pricing strategy in high piracy markets. This statement explains that the management is interested in examining the levels of illegal reproduction. Experts hold the view that infringement is being considered to attract consumers who are able to retrieve movies and shows from ‘torrent sites’ and digital lockers for free.
The corporate giant believes that higher rates would not be able to reduce the levels of data invasion being practiced. Market sources revealed that the privacy-based pricing strategy would be implemented in the areas outside the United States of America. Netflix news today stated that it employs details retrieved from piracy sites. This information is sufficient to indicate that the company itself is one of the beneficiaries of infringement.
In 2013, a company official said that the company makes its decisions after assessing the popularity of shows in different territories. It purchased the rights to “Prison to Break” in Holland after witnessing high download rates in the country. Company sources informed that the launch of the services in Canada had reduced the usage of ‘Bit Torrent’ traffic by 50%. The concerns for privacy matter for many companies involved in video content services.
Netflix breaking news highlighted that the management has kept its charges low in Australia, as the measure has been taken to reduce the levels of privacy. Australians pay $8.99 per month for basic subscription, which permits them to view shows, such as House of Cards, on one screen in high definition. Industry sources have informed that higher price tiers will provide a better service to users.
It is being believed that Australian pirates have favored the users of the service because when exchange rates are taken into account, the Australian residents end up getting a better deal than the overseas users, while the American users pay $7.99 ($10.25) a month for the lowest tier of the service. One could say that the pirates have indirectly blessed the subscribers of Netflix. Now it is yet to be seen that to what extent the pricing strategy is able to compete with such pirates.