Netflix recognizes the difficulty of competing with piracy that offers content for free, an issue highlighted in their latest 10-K report to the SEC. This document, intended for investors, highlights piracy as a major threat.
In 2023, video piracy saw notable growth, with significant increase in visits on dedicated sites, particularly in Canada, while Brazil saw a decrease. The United States and India, each contributing 11% of overall traffic, dominate this activity, with India showing a impressive annual growth by 80%.
Faced with the rise of piracy, Netflix, aware of these challenges, is exploring innovative strategies to attract new subscribers. As evidenced by an unexpected partnership recently announced with Carrefour, integrating subscriptions to the platform into the Carrefour Plus program. This in an attempt to attract new subscribers despite growing competition from free content online.
According to Netflix, piracy would hinder its growth
With l’rise of streamingNetflix has positioned itself as a direct competitor to online hacking, offering a legal and practical alternative. However, the emergence of multiple and expensive streaming platforms has recently reversed the trend, favoring a resurgence of piracy. The company admits in its 10-K report in the “competition” section that piracy, by offering content for free, represents a form of competition particularly difficult to overcome. This situation is exacerbated by the ease of access and rapid growth of pirated contenteven in well-served countries like the United States or France.
The 10-K report is a mandatory annual document for publicly traded companies. Filed with the SEC (an agency of the United States federal government), it provides complete analysis of the financial situation and business prospects. This approximately 10,000 word document contains crucial information for investors, analysts and other stakeholders. It details financial results, expansion plans,the main risks and corporate governance.
Faced with this rise of piracy, the company and other platforms may need to rethink their strategies. The diversification of offers and adaptation to new habits appear as potential avenues for stay competitive in this changing environment.
Source: SEC