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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."
I doubt Netflix cares about geo restrictions at all. They're probably being pressured hard by the content providers. "Do something about this or we won't let you show our products."
"An unarmed man can only flee from evil, and evil is not overcome by fleeing from it." Col. Jeff Cooper
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.
It's likely that it's the content providers that thinks that they will profit more from the content if it's made scarce in some areas - at the cost of annoying the consumers.
No I honestly think its because Hollywood is too fucking lazy to re-write its standard industry contracts. It's a well established fact by now that the ONLY thing restricting content from a region does is boost piracy of that content in the "scarce" region. Hollywood idiots need to learn that the world has changed and they can't afford to turn away a customer with money in his hand EVER.
Seven puppies were harmed during the making of this post.
No you are ridiculous. I am a paying Netflix customer. I access Netflix US via a VPN because I live outside the US. I will cancel my Netflix subscription if I find myself blocked. Hollywood has already been paid by Netflix for the rights to distribute the content. When I cancel my sub Hollywood will not lose one penny this quarter. The rub is, I will not be subscribing again. So Netflix is the one that is going to suffer. Hollywood is still going to want their money next quarter, and Netflix will have lost subs. How is this an attack on Hollywood? If anything, it's suicide by Netflix. Online content is just another item in the Hollywood revenue budget, whereas it is almost all of Netflix's revenue (apart from the couple shows they make themselves). Hollywood cannot be attacked by Netflix. Netflix is very much Hollywood's pet, and must do as it's told.
Seven puppies were harmed during the making of this post.
IP rights are extremely complicated in the entertainment industry -- especially for older works where all parties didn't decide up-front what residuals would be from "streaming media" which didn't exist at the time of filming. Writers guilds, actor's guilds, and each and every person listed in the credits can get involved with how much they should get paid for what region, how, and when the film or tv show is aired. A lot of actors, writers, and directors want a cut of residuals as well as a paycheck up front. I have friends that are extras in lots of tv shows and movies and occasionally get paid bit parts. They get nothing when someone airs something they were in as an extra, but the bit parts -- if they're in the credits, they get a check every single time some network plays a movie they were in. They're called "residuals" and you better believe they're a complicated mess when 10 years down the line the production company wants to change the rules on distribution to include Netflix an/or a new country. How many phone calls are made to find each and every person in the credits for a work -- including "local jerk #3" to renegotiate his contract 10 years later? Have you seen how many names scroll by at the end of movies?!?!? Sure, for new works it's easier b/c they try to include future tech in the contracts, but it's crazy to expect a lot of entertainment producers to do the work to get the rights to distribute their own works through a different distribution channel than their contract allows.
I'm astonished Netflix even bothered going with so many countries for programming when just the USA and Canada was a nightmare to work out. They've probably been in talks for years to get approvals for other countries. The VPN/proxy ban was probably part of that discussion.
Netfix is not to blame, but the content providers themselves may not be to blame either -- they're bound by a lot of contracts, too. Follow the money if you want to know where this comes from. Lots of actors get X up front, a percent of domestic, and a percent of global through DVD, Bluray, theaters, syndication on TV networks, and many also have Netflix/Hulu/streaming percentages as well. The US Tax code is probably less complicated.