A different view by Jaime Porta

When Netflix expands into a new country, it doesn’t just guess what people want to watch, it already knows. Instead of treating piracy as a threat, Netflix treats it like a cheat sheet. By analyzing what’s being illegally downloaded, they buy the rights to those exact titles. The result? A catalog people already crave, legally and affordably accessible.

It’s not just a clever move, it’s a strategic masterclass in using consumer behavior data to create product-market fit.

From Enemy to Ally: Piracy as a Market Research Tool

In 2013, when Netflix launched in the Netherlands, its content team reportedly used data from BitTorrent and other torrent sites to identify the most downloaded shows. If people were pirating Breaking Bad and The Walking Dead, that meant they wanted it, badly. So Netflix licensed those shows. That early move helped them win over Dutch audiences quickly.

This wasn’t an isolated experiment. Ted Sarandos, Netflix’s then-Chief Content Officer, publicly acknowledged that piracy data informs licensing decisions when launching in new markets. In other words: piracy didn’t just inspire Netflix’s catalog, it optimized it.

The Data Doesn’t Lie: Piracy Goes Down When Content Goes Up

Multiple studies confirm a clear pattern. When Netflix adds popular titles, piracy drops.

• A University of Georgia thesis found that adding a major film like Rango to Netflix led to an 11% drop in daily piracy downloads.
• In Australia, piracy fell by 4% following the arrival of Netflix and Stan,people naturally preferred legal options that were easier and more reliable.
• Sandvine’s reports showed BitTorrent traffic in North America plummeted as Netflix’s share of streaming traffic soared. Convenience wins.

Why pirate when you can binge?

Reverse Effect: What Happens When Content Disappears

But here’s the catch. When shows disappear from Netflix due to licensing shifts, piracy goes back up.
A 2023 academic study found a 20% increase in piracy-related searches when Epix movies left Netflix for Hulu. People didn’t switch platforms. They went back to torrents.

That tells us something important: once users find a platform that works for them, they don’t want to juggle five others. Fragmented streaming pushes them back to illegal options.

Lessons for the Digital Economy

Netflix’s strategy is a masterclass in listening to what people already do instead of asking what they might want. It also underlines a larger truth: people aren’t loyal to platforms,they’re loyal to content and convenience.

By making content easy to access, fairly priced, and adapted to local tastes, Netflix doesn’t need to “fight piracy.” It renders it irrelevant.

The takeaway for digital businesses?

• Understand real user behavior (even the “unofficial” kind)
• Use it to inform product decisions
• Make switching to you the easiest option, not just the legal one

Conclusion

In the battle between piracy and streaming, Netflix chose a surprising tactic: learn from the pirates. And it worked. In many countries, it’s not stricter laws or better enforcement that lowered illegal downloads,it’s simply that Netflix made it easier to watch what people already wanted.

This principle doesn’t just apply to movies and series. Think about sports. When live games are fragmented across different subscriptions, blackout restrictions, or geo-blocked streams, fans turn to illegal sources,not because they want to, but because they feel forced to.

If leagues and streaming providers looked at which matches or competitions are being pirated the most, they could use that data to shape better, more accessible sports offerings. Imagine if the Champions League, the NFL, or Formula 1 used piracy heatmaps to drive licensing decisions, improve coverage, or offer fair regional access. Instead of trying to shut pirates down, they could beat them at their own game.

The lesson holds across industries: when people pirate, they’re sending a signal. Those who listen and respond, not with punishment, but with convenience, are the ones who win.