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Re:Netflix to block proxy access to content not available lo... by bmelton on Thursday January 14, 2016 @04:42PM (#10904746)
Then it doesn't work for pirated movies, which has distribution costs associated.

You'll need to add yet another caveat to your original claim to make it work.

Re:Netflix to block proxy access to content not available lo... by Karunamon on Thursday January 14, 2016 @04:50PM (#10904820)
Once again, I was speaking of digital content. The "distribution cost" of a 600-4000MB file is effectively nil.
Re:Netflix to block proxy access to content not available lo... by vidbina on Thursday January 14, 2016 @06:15PM (#10905570)
Netflix seems to spend a fortune in encoding and distributing this type of content. I think that distribution may not always be as simple of a problem and should not be marginalised as such. Especially if you consider the numbers in terms of demand and quality expectations for such services.
Re:Netflix to block proxy access to content not available lo... by Karunamon on Thursday January 14, 2016 @06:18PM (#10905586)
Literal thousands of people are distributing various content, for free, right now. Out of sheer altruism most of the time - they get nothing back after their initial download. Pick your favorite torrent site.

The fact that the business landscape wouldn't tolerate this as a legitimate method is a failure of ego and imagination, not something inherent to the system.