Piracy:
-Theatrical films generally get pirated a few months after being released, whereas movies and tv shows released on streaming services experience this within hours.
-Theatrical films will not be impacted as much, as their revenue is mostly generated at their release. However, streaming services will be affected, as their revenue is generated over a much longer period of time, with audiences tuning in at different times after its release
- Shifting away from their rental business model, the company introduced the popular VOD platform, acquiring rights from popular studios such as Universal and Warner Bros
-By introducing this platform with a variety of different content catering to many target audiences, Netflix hoped to counter the rise of video pirating.
- They were successful, but only for a short while
-Between 2011 and 2015, piracy was down by 50% in North America
-Soon after, other companies launched streaming platforms as well, putting an end to Netflix's monopoly
-HBO launched HBO GO and HBO NOW, Amazon Amazon Prime, as well as Hulu to name a few
-These services gain the upper hand by exclusively licensing content from distributors
-For example, Netflix paid $100,000,000 to exclusively retain the rights of 90s tv show Friends in the year 2019
-Another way these services increase their number of subscribers is by producing original content, which cannot be viewed on any other platform
-By producing content based off of user content trends, the services can potentially build a successful franchise which will give them high ratings on IMDB, and creating a positive brand image for the company.
-Since content is so spread out, there has been an increase in pirating, consumers not wanting to subscribe to all these various streaming services
-To combat this, Netflix has released interactive films, in which the audience gets to make choices, changing the outcome of the film
-It was expected that piracy would cost the streaming industry $52 billion dollars in 2020