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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.