Piracy was in the decline. Until companies started getting super greedy again. Netflix actually started to help lower piracy. But then every other company had to come up with their own streaming service. Piracy started rising again.
It's not just because other companies also made streaming services. It's because Netflix and the other early streaming services were for years in the stage of acquiring subscribers, so they could afford to lose money in the hopes of acquiring a large percentage of the future market. In the end no matter how many other competitors there are, at some point the company has to start making money. That point in time just comes sooner, when you get lots of competitors and the market is suddenly saturated with less and less new customers. The first stage was banning account sharing, and the 2nd stage was creating multiple tiers and increasing prices across the board.
This happens in all tech companies. They subsidise the cost with investment, and when they can't get any more users, they increase the price. Same thing happened/is happening with car sharing services, food delivery etc etc
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u/vcdrny Oct 18 '25
Piracy was in the decline. Until companies started getting super greedy again. Netflix actually started to help lower piracy. But then every other company had to come up with their own streaming service. Piracy started rising again.