Netflix Bases International Pricing On Country’s Piracy Level

Netflix has rapidly expanded beyond the borders of the U.S. and now has 60 million subscribers worldwide. However the price of Netflix service varies from country to country, and the company says this is due in no small part to local piracy levels.

“Piracy is a governor in terms of our price in high piracy markets outside the U.S.,” said Netflix Chief Financial Officer David Wells on the most recent quarterly earnings call for the company.

Netflix recently launched in Australia, where piracy is more popular than in other parts of the world. And while the approx. $9.37/month Netflix charges for HD streaming in Australia is slightly higher than the comparable $8.99/month plan here in the U.S., it’s less expensive than other streaming options in the country.

“We wouldn’t want to come out with a high price because there’s a lot of piracy, so we have to compete with that,” explained Wells.

Netflix’s head of content Ted Sarandos said that the best way to combat piracy is to bring Netflix to high-piracy markets. Give people an affordable option with the content they want, and you’ll convert them into paying customers, according to Sarandos.

“The real great news is that in the piracy capitals of the world Netflix is winning. We’re pushing down piracy in those markets by getting access,” he said during the investor call.

[via TorrentFreak]