Netflix Views Pirating Service Popcorn Time As A Threat

(RTTNews) - Netflix now regards movie pirating service Popcorn Time as a competitor, the company said in a letter to investors.

Popcorn Time has been described as a free alternative to subscription-based video streaming services such as Netflix. It has also been called "Netflix for Pirates."

Netflix, which recently announced it would accelerate is global expansion plans, is concerned that peer-to-peer torrent-based software is gaining popularity, particularly in Europe.

"Piracy continues to be one of our biggest competitors," Netflix said, citing a "sobering" graph of Popcorn Time's sharp rise relative to Netflix and HBO in the Netherlands.

Despite the company's admitted anxiety over piracy, Netflix shares have risen sharply this week in the aftermath of a boffo earnings report that revealed strong subscriber growth.

Netflix added 2.43 million new international subscribers in the fourth quarter compared to expectations of 2.1 million.

The company reported revenue of $1.48 billion and a 72-cent earnings per share, compared to analyst expectations of $1.485 billion revenue and 45-cent earnings per share.