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Netflix Decides To Crack Down On VPN Users (netflix.com)
An anonymous reader writes: Netflix have announced they'll be taking further steps to ensure users are not circumventing geo-restrictions. David Fullagar, Vice President of Content Delivery and Architecture at Netflix says "Some members use proxies or "unblockers" to access titles available outside their territory. To address this, we employ the same or similar measures other firms do. This technology continues to evolve and we are evolving with it. That means in coming weeks, those using proxies and unblockers will only be able to access the service in the country where they currently are. This announcement comes just days after Netflix Chief Product Officer Neil Hunt said that a VPN blocking policy might be impossible to enforce."
They're absolutely being lobbied by content providers. It was in the news not that long ago when they leaked emails from Sony on Wikileaks.
https://wikileaks.org/sony/emails/emailid/3124
1. Geofiltering
Netflix do not closely monitor where some of their subscribers are registering from and don’t take steps to counter circumvention websites that allow people in, for example, Australia, to sign up to the US or the UK Netflix service and subscribe illegally (Netflix don’t as of now have a service in Australia, nor do they have Australian rights for our content).
We have asked Netflix to take steps to more closely monitor circumvention websites, and to restrict methods of payment to more clearly weed out subscribers signing up for the service illegally. This is in effect another form of piracy – one semi-sanctioned by Netflix, since they are getting paid by subscribers in territories where Netflix does not have the rights to sell our content.
Netflix are heavily resistant to enforcing stricter financial geofiltering controls, as they claim this would present a too high bar to entry from legitimate subscribers. For example, they want people to be able to use various methods of payment (e.g. PayPal) where it is harder to determine where the subscriber is based. They recognize that this may cause illegal subscribers but they (of course) would rather err that way than create barriers to legitimate subscribers to sign up.
We have expressed our deep dissatisfaction with their approach and attitude. I’m sure other studios feel the same way, especially as we are now hearing from clients in Australia, South Africa and Iceland (to name a few) where significant numbers of people are able to subscribe to Netflix. Netflix of course get to collect sub revenues and inflate their sub count which in turn boosts their stock on Wall St., so they have every motivation to continue, even if it is illegal.
This issue is almost certainly going to get more heated, since our goal and Netflix’s are in direct opposition.
What good do regions do to any business strategy? Users pay to watch content and the content provider gets payed.
The content providers are not getting paid. When content is produced, different regions buy rights to distribute that content; to sell it. As an ironic example, Hulu bought the Japanese rights to House of Cards, a Netflix Original production. Why did Netflix sell it? Because at the time they didn't do business in Japan. Now they do. So if you subscribe to Netflix Japan, you won't find House of Cards.
So Hulu is understandably miffed if a Japanese consumer VPNs into the U.S. Netflix to watch House of Cards. Netflix is getting payed for content owned by Hulu.
As a Finn, I couldn't agree with you more. Netflix has shot up interest in VPN services across the board. The majority of my friends who use netflix here use a VPN to access the american catalog, myself included, because the Finnish Netflix selection is poor in comparison. However my friends are mostly male nerds in their 20s and 30s, so obviously there's selection bias. When F-secure launched their new service that included VPN, one of the main features people were talking about was the ability to easily watch Netflix and other streaming services as an 'american'.
I've been a continuous customer almost since Netflix launched here, but when this goes through I might have to halt the subscription, because I've seen pretty much everything worth watching on the Finnish side of Netflix, so it's just not worth the money anymore. It will not destroy the company but it will severely affect their business.
"It is the business of the future to be dangerous" -Alfred North Whitehead
Netflix allows you to pay in more ways than your CC (e.g. PayPal & gift cards).