Netflix says ``It is becoming difficult to fight against pirated sites that are provided for free''
As the pirate market
Netflix: Piracy is Difficult to Compete Against and Growing Rapidly * TorrentFreak
https://torrentfreak.com/netflix-piracy-is-difficult-to-compete-against-and-growing-rapidly-240204/
According to research results announced in January 2024 by MUSO, which tracks copyright infringement, the number of accesses to pirated video content sites in 2023 was over 141 billion, an increase of approximately 10% from the previous year. This has been shown. The infringed content includes 65% movies and TV shows, 25% anime, approximately 9% live sports, and the remainder includes other live broadcasts.
Access to pirated copies of movies and TV programs will exceed 141 billion in 2023, with improvement trend in Japan - GIGAZINE
Netflix has amassed hundreds of millions of subscribers with the goal of ``taking market share from pirated sites by providing a legal and more convenient streaming platform.'' As a result, it appears that they have succeeded in reducing the number of users of pirated sites by some percentage.
However, in recent years, many streaming services, including Netflix, have raised prices and increased advertising. TorrentFreak, which distributes news about copyright infringement, points out that copyright infringement is on the rise again as a result of repeated price increases by streaming services that have gained a large share.
Netflix raises prices again, new acceptance of basic plan will soon stop - GIGAZINE
Netflix filed its annual report, Form 10-K, with the U.S. Securities and Exchange Commission (SEC) on February 5, 2024. The Form 10-K includes a ``Competition'' section in the annual report summary, which also mentions copyright infringement.
In its Form 10-K, Netflix said, ``The online video industry is a highly competitive business. The basis of the industry's economic model includes subscriptions, transactions, advertising, etc. A similar model applies to illegal pirated sites. Pirated content has the potential to capture an important segment of the entertainment video market.'' He emphasized that pirated sites pose a threat to competitors. .
According to Netflix, the biggest advantage of pirated sites for consumers is that they are free, making it very difficult to compete with services that are based on a paid subscription model. thing.
Furthermore, ``When Netflix first launched, it had an advantage in that its streaming format was more convenient than most pirated sites,'' TorrentFreak points out. Torrent sites, which were once the mainstream pirate site, required users to have a certain level of technical knowledge and required a long wait time for the content to be downloaded, so even if they were paid, Many users prioritized Netflix because it was easy to use and quickly accessible.
However, at the time of writing, most pirated sites support streaming formats, taking away Netflix's big advantage. Netflix says, ``The number one problem with pirated content is that it's 'attractive' to viewers.Given the consumer appeal of free and convenient content, piracy services are experiencing rapid growth worldwide. 'We believe our efforts to prevent this growth may be insufficient.'
Netflix co-founder Reed Hastings, who retired as CEO in January 2023, said at the time of Netflix's release, ``We are aware that there are people who violate copyrights on torrent sites. It's not only a bad thing, it's also creating demand for Netflix's content.'' He did not consider copyright infringement by pirated sites to be a major problem. At the time of article creation, Netflix has an in-house anti-piracy department, and hundreds of millions of yen are spent monitoring copyright infringement and pirated sites.
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