I always figured Netflix didn't crack down on this because they knew the risk they run by pursuing it and had weighted out the risk vs reward and concluded that

I always figured Netflix didn't crack down on this because they knew the risk they run by pursuing it and had weighted out the risk vs reward and concluded that the value of having a larger market out-weighted what they might be able to squeeze out of their current customers. I guess this might mean Netflix is looking forwards and are expecting less from a growing market as the competitive pressure from Disney, Amazon etc. and are thinking that they'd better try to claw in some profit expecting not to grow their market?