Even if content license holders don't require Netflix to go above and beyond, building sophisticated DRM is a moat against other streaming services. If Netflix can build a sophisticated VPN-detection service, copyright holders will be much less willing to license their content to upstarts who can't match its capabilities.
In the same vein, it can be rational behavior for a market leader who deals in private information (most online advertising companies) to advocate for consumer privacy protections. It "hurts" them, but if the resulting regulations are so onerous that only incumbent(s) can comply, it can restrict the competitive landscape and paradoxically be advantageous to the existing leaders.
In the same vein, it can be rational behavior for a market leader who deals in private information (most online advertising companies) to advocate for consumer privacy protections. It "hurts" them, but if the resulting regulations are so onerous that only incumbent(s) can comply, it can restrict the competitive landscape and paradoxically be advantageous to the existing leaders.