Netflix Seeks To Monetize Torrent Users

Netflix is starting another battle with its target audience i.e. non paying customers who access its content through torrents.

It is known that not all viewers who access Netflix are paying for the monthly subscription. Netflix Inc. knows that password sharing amongst viewers, friends, and families is common and gradually the trend is increasing for multiple reasons. One reason is that password sharing is a cost effective method of using the service whereas the other reason is that some people buy one membership (preferably the 4 screen plan) in one household. But it seems like the online video content service provider might soon change this feat.

The streaming giant recently began its crack down operation on users that were accessing the service using a VPN service. According to the company, this was the initial step to take on pirates. Sources suggest that Netflix is now taking its operations a step forward as it looks forward to preventing the paying customers from stealing using VPN services.

The streaming service provider is also making a list of sites that are the host to pirated original series of Netflix through torrent links. All in all, Netflix wants to make its customers feel valued as if almost 75 million subscribers are spending minimum $7 per month to access Netflix content and original series, why the remaining TV viewers who are not subscribed to Netflix get to watch its content via pirated means.

It is believed that this is the first time ever that the streaming service provider has taken a bold approach to protect its copyrighted properties. For long, the company was under pressure from its content license owners to save the content from geo dodgers and such pirates.

In 2015, the CEO Reed Hastings famously said that Netflix is not interested in going against those users who pirate its content. Mr. Hastings continued, “Certainly there’s some torrenting that goes on, and that’s true around the world, but some of that just creates the demand.”

Since then, Netflix has significantly grown in the market to become the global TV network. And as it keeps on moving forward, the organization is changing its policies of which the streaming service trying hard to prevent access of non paying customers from the platform from under rated and shady locations. Netflix is forcing and urging people who do not own a streaming membership to buy and do not steal content video hosting sites and torrents. It wants people to stream the same content using its official service.

Netflix is all in to fighting pirates. Torrent Freak states, “The company has significantly increased the number of takedown requests in the last year. So far, the company targeted almost 72,000 links to pirated content found on both torrenting and streaming sites. Most of these links have been removed, so don’t be surprised if you can’t find House of Cards, Narco, or Sense8 available for download on illegal sharing or for streaming on shady sites.”

The internet TV provider is currently engaged in two battles now with its own target audience. It will be exciting to see how the company manages to win as well as keep hold of its customers in the longer run

Netflix Inc. Spending on Content surpassed BBC and Discovery

Netflix is spending more on content than ever, and the amount spent by the company is much more than that of Discovery and BBC but less than Sky.
Ben Keen a Chief analyst at IHS Technology said, Netflix Inc. started making orignal content in the year 2012 and up til now has spent more than BBC on orignal programming. He added that these spendings have made Netflix surpass those of Discovery but slightly less than Sky mentioning that rights of sports were obtained on high costs.
In a session named"The story behind the numbers" Keen while speaking made a comment that a major amount on content was also spent by Amazon Inc. the streaming company user's subscription is directly proportional to its spending on the content, as recognized by Keen.it was perceived that increase in any of the them will led to an increase in the other also.
While discussing the viewpoint of the streaming media industry, he stated that world-wide online videos revenue, driven by advertising and user subscriptions are most likely to increase to double digits by the end of 2018. The Europe Middle East and Africa region (EMEA) has over 40 million of Subscription Video on Demand subscriptions with almost 50% of standardized online services. Local production receives a scanty share of 20% of the content produced by Netflix, but it is most likely that the number will increase in coming weeks, as reported in the news of Broadband TV.
During the last ten years, value of over €12 billion has been supplemented to the cable market of Europe that has multiplied at this period of time. The analyst pointed out that the streaming industry on the whole has witnessed a fair growth during the previous years, but because of this growth cable operators are falling short of subscribers.
Netflix is looking forward to invest more in content business. In order to capitalize on that, it plans to issue $1.5 billion in notes. Likewise, during the company's fourth quarter earnings report, Chief Executive Officer, Reed Hastings disclosed its strategy of investing more in original content programming.
Mr. Hastings said, "Over the next few years we expect to continue financing our original content expansion with long-term debt."
As reported by S&P, as of 31st December, 2014, the streaming service company had almost $9.5 billion in commitment of streaming content in contrast with $7.3 in 2013. Due to its content programming, the company got nominated for Emmys and various other awards. It will be stimulating to witness how well the Netflix will manage its investments for its plan of expanding the services in more than 200 countries before 2017.
Netflix stock was trading at $438.40 on Friday market close.