Netflix’s Use of Pirating Websites

POSTED by Stephanie Surette

Does it make sense for media giants to monitor pirating websites for their own profit? In a New York Times article, the author discusses how Netflix has admitted to reviewing piracy websites to gauge consumer interest in shows before committing to purchase them. The company reviews pirating websites to see what programs are being downloaded by consumers and whether or not there is enough interest in the show to warrant them purchasing the license. By monitoring pirating websites, is Netflix undermining laws that were put in place to protect them? These laws are designed to deter consumers from illegally downloading content and instead by using the data provided from these sites, are they legitimating consumers’ use of these sites?

For some consumers, the small monthly charge that Netflix charges is worth the convenience of having an array of TV shows and movies at their fingertips. However, even though Netflix has options to suit any taste, they don’t have everything and they don’t always have the most recently released movies available for streaming. The copyright laws in the United States are strict, and can result in a fine of $250,000 and up to five years in prison for a first offense. While there are steep penalties for offenders, it’s not enough of a deterrent for some. As described in another New York Times article, “[stopping] online piracy is like playing the world’s largest game of Whac-A-Mole.” Almost half of the adults in the United States are estimated to have engaged in some form of piracy (see page 3 of this study).

Where there’s a will, there’s a way – and there’s obviously a will for many people to avoid paying for content when it’s readily available on pirating websites. Even though Netflix is monitoring the pirating websites, they’re not just sitting idly on the sidelines. In 2012, Netflix established FLIXPAC, which is a political action committee (“PAC”) aimed to promote anti-piracy laws and their other interests. While Netflix has an interest in stopping or creating more obstacles for consumers to download content illegally, they might as well monitor it for their own uses while it’s still happening. The piracy battle isn’t close to being over and Netflix may as well get something out it while it’s still going on. If the harsh penalties for piracy haven’t stopped consumers from illegally downloading content, it’s unlikely that Netflix’s use of data from pirating websites will influence their decision regarding whether or not to download content.

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