If you are paying for a Netflix subscription and a movie comes on over the air you are legally allowed to timeshift and record the OTA show for later consumption. So what’s stopping the other direction, timeshifting (or pirating) and not watching until it’s available on a service you paid for?

You are allowed to backup a movie for your records, which means you can record Netflix shows for later consumption. Those backed up shows watched later are not counted by Netflix’s algorithm, so that production company is not paid.

I’m not supporting one side or the other, I’m raising awareness that IP theft is not so simple when the production companies are still getting paid even with loopholes in the regulation