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Full disclosure: my side-project (which I have woefully neglected of late: http://moviepresto.com) uses the Netflix API to determine if a movie is available on Netflix Instant or as a disc rental and then links accordingly. The title, description, basic info, and background image come from themoviedb.org. Personally, I'd prefer for my "what do I want to watch tonight?" decision start with the set of everything that's been released and then follow to "where is that available?", instead of starting with "what is available to watch on platform X?". My cynical side tells me that Netflix doesn't just want to be the center of the online streaming universe; they want to BE the universe.
Even more sadly, I think Netflix won't even realize what they are missing out on: potential user interface improvements that they could incorporate into their own products, ideas for integration they never would've thought of, potential great hires, etc.
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Just today I was talking with someone about integrating Netflix data in to their app, and I almost registered for an API key, but waited until I got home. Then I stopped off, got home late, did some work, and now this. :/
I guess if this is how they run it, then they might revoke access to then-current API-key holders in the future with little warning anyway...
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TL:DR 3rd party usage of the APIs used to be big, but then became pretty much a statistical irrelevance compared to usage by Netflix's own software / tv apps / etc.
So it would seem the business case to keep developing a 3rd party friendly API is not really there anymore.
[1] http://www.slideshare.net/danieljacobson/techniques-for-scal...
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It is always a trade off when you are relying on API: on one side you can focus solely on the project core values knowing that the underlying data will be provided, on the other side if you build everything including what an API provides you are ending building up a different business.
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