Us Netflix users should do everything in our power to show that Netflix reduces piracy. Then, the studios, which own all of the IP, will work out a reasonable deal and we will have a larger streaming library. I don't care if it's true or false, i'm just tired of the MPAA not getting with the program!
No, reducing piracy actually means nothing to studios. What they care about is making money. If piracy disappeared tomorrow but revenues did not go up, that is a worst-case scenario for the studios. They actually like having an scapegoat for their flagging sales, especially when it's illegal and opens up the opportunity for legal recompense.
The truth is that the content companies are willing to play ball with Netflix because they make money, but they are also scared of Netflix's market power and the fact that they make much less per unit than they do from cable or DVD sales. The fact is Netflix is already capable of slashing someone's cable bill by 90%, and the effect on DVD/Bluray sales is potentially even more dramatic for certain consumers.
