I think there is no question that Netflix will see ARPU drop. What they are forgetting is the same thing that movie studios forgot for a while when trying to fight piracy: a person who truly values an item at $0 is not and will not ever be a paying customer. If the anti-piracy campaign makes things too inconvenient for the ACTUAL custome…
I think there is no question that Netflix will see ARPU drop. What they are forgetting is the same thing that movie studios forgot for a while when trying to fight piracy: a person who truly values an item at $0 is not and will not ever be a paying customer. If the anti-piracy campaign makes things too inconvenient for the ACTUAL customers the revenue goes down, as some of those customers quit while no additional money is obtained from the pirates (who may stop pirating, but do not start paying).
I think there is no question that Netflix will see ARPU drop. What they are forgetting is the same thing that movie studios forgot for a while when trying to fight piracy: a person who truly values an item at $0 is not and will not ever be a paying customer. If the anti-piracy campaign makes things too inconvenient for the ACTUAL customers the revenue goes down, as some of those customers quit while no additional money is obtained from the pirates (who may stop pirating, but do not start paying).