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Netflix: Piracy is Difficult to Compete Against and Growing Rapidly
(torrentfreak.com)
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Being first does not make you the legitimate proprietor of a flawed system.
The greatest flaw in the system is the fragmentation and consequential cost - when things were consolidated under Netflix, things weren't perfect but it can't be said that they weren't far better.
The true underlying flaw is capitalism, but isn't it always?