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VPN Blockade Backlash Doesn't Hurt Us, Says Netflix (torrentfreak.com)

Ernesto Van der Sar, writing for TorrentFreak: Netflix CEO Reed Hastings says that the recent crackdown on VPN and proxy users hasn't hurt the company's results. The VPN blockade only affects a small but vocal minority, according to Hastings, and there are no signs that hordes of subscribers are abandoning ship. Earlier this year Netflix announced that it would increase its efforts to block customers who circumvent geo-blockades. As a result, it has become harder to use VPN services and proxies to access Netflix content from other countries, something various movie studios have repeatedly called for. When asked about the impact of the VPN changes on the results, Hastings brushed the issue aside as a minor detail that doesn't impact the bigger picture in any way. "It's a very small but quite vocal minority. So it's really inconsequential to us, as you could see in the Q1 results." Earlier this year, Hastings also admitted that a VPN-blocking policy might be impossible to enforce.

20 of 98 comments (clear)

  1. Small and inconsequential by Macdude · · Score: 5, Insightful

    If it's small and inconsequential, why bother blocking it at all?

    --
    "Grab them by the pussy" -- President of the United States of America
    1. Re:Small and inconsequential by MightyMartian · · Score: 5, Insightful

      Because the rights holders demand it. It's the only way Netflix can guarantee they'll continue being allowed to show their content.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    2. Re:Small and inconsequential by Austerity+Empowers · · Score: 3, Interesting

      it's small and inconsequential

      I think they are deluding themselves. What I read is that their VPN region block has been utterly ineffective, except for a small and inconsequential group of people who don't know how to get around their VPN blockade.

      I don't know a single person who was actually stopped by this, but there was a lot of chuckling when it went down.

    3. Re:Small and inconsequential by dmbasso · · Score: 5, Insightful

      Because the rights holders demand it.

      And it seems it's inconsequential to them as well. And from that we can extrapolate and say that those users, that were willing to pay but now are probably going to get the content by illegal means, doesn't really matter. It's a win-win-win scenario!

      --
      `echo $[0x853204FA81]|tr 0-9 ionbsdeaml`@gmail.com
    4. Re:Small and inconsequential by BarbaraHudson · · Score: 4, Insightful

      Most people won't bother to get the content by illegal means - they'll just watch something else from Netflix.

      --
      "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
    5. Re:Small and inconsequential by Kjella · · Score: 2

      And it seems it's inconsequential to them as well. And from that we can extrapolate and say that those users, that were willing to pay but now are probably going to get the content by illegal means, doesn't really matter. It's a win-win-win scenario!

      It's the traditional TV networks that care. They're the ones saying "exclusive rights in Kerbeckistan" is no good if the ratings are poor because people see it on Netflix over VPN. Just like the cinema business refuse to show movies that air at the same time, they won't give people cheap watercooler talk. If you want to be "in" on recent movies and not hear spoilers, it's in theaters and only in theaters now.

      Of course one alternative is to go all Netflix, but 76% still pay for traditional cable or satellite service. So they're the ones cracking the whip at the content companies who again knocks Netflix on the head and say "ey, we like selling it to both of you so you two behave". Not much doubt on where it's going though, streaming services are in massive growth so maybe in a decade or two it's a different world. But today they can still bully Netflix into blocking VPNs.

      --
      Live today, because you never know what tomorrow brings
    6. Re:Small and inconsequential by Anonymous Coward · · Score: 3, Informative

      Don't use a third party VPN service. Deploy your own VM with OpenVPN (or just use the built-in L2/L3 facilities provided by OpenSSH), configure it (and a couple of DNS-related things) properly, and HAND. If anyone is truly interested, I might put together a small guide (and maybe a basic "doitnow.sh" script) for this. -PCP

    7. Re:Small and inconsequential by MightyMartian · · Score: 2

      I think, in the long run, companies like Netflix and Amazon are going to end acquiring more and more new shows that broadcast monopolies will break down anyways. That will obviously take some time, but with cord cutting on the rise, I think at some point in the next five to ten years the tipping point will be reached. Amazon and Netflix will be aided by the incompetence of the broadcasters, either trying to turning streaming into just another version of the standard broadcast, or with really buggy streaming interfaces, or often both.

      This seems to be replicating what the music industry went through in the 2000s, before the record companies finally admitted defeat and basically handed over online distribution to companies like Apple.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    8. Re:Small and inconsequential by ewhac · · Score: 3, Funny

      Because the rights holders demand it. It's the only way Netflix can guarantee they'll continue being allowed to show their content.

      Dear Hollywood:

      We have twice the number of subscribers as Comcast. Now shut the fuck up.

      Cordially,
      Netflix

    9. Re:Small and inconsequential by UnknownSoldier · · Score: 2

      Except it is not. i.e. Ran into this very issue over the Winter break:

      While visiting my parents in Canada I couldn't stream Netflix which is bullshit. I live in the US, and NetFlix can tell I have an US account but apparently since "I'm on vacation" I'm not allowed.

      Shenanigans indeed.

  2. Re:This bull by OverlordQ · · Score: 2

    Just because it's a US title doesn't mean the rights holder sold the US distribution rights to Netflix

    --
    Your hair look like poop, Bob! - Wanker.
  3. Re:This bull by shaitand · · Score: 2

    Then Netflix shouldn't put it on my list. Or rather they should dish out for the rights, they've continued to increase prices while dropping more than half their content.

  4. I killed my service by future+assassin · · Score: 3, Interesting

    for blocking Unotelly to access US from Canada. Back to torrents, pawn shops and my 800+ DVD collection. Personally we just watched nature and travel shows and pretty much watched them all by now but fuck em I'll take the $11 and buy weed with it.

    --
    by TheSpoom (715771) Uncaring Linux user here. I have nothing to add to this but please continue. *munches popcorn*
  5. Re:This bull by Mr+D+from+63 · · Score: 5, Insightful

    Then Netflix shouldn't put it on my list. Or rather they should dish out for the rights, they've continued to increase prices while dropping more than half their content.

    You should just stop paying them.

  6. Geolocking shakedown by geekpowa · · Score: 3, Interesting

    Step 1: try to acquire content via one of my PAYG preferred streaming services legally
    Step 2 : torrent (or wait for physical distribution and borrow the discs off someone else)

    I don't mind paying for content and 90% of content I do consume is paid for. I don't even mind too much if rights holders try and charge me significantly more than what they charge other regions as long as it is accessible and the price points are reasonable. What fkn shits me is having to deal with and enrich elusive rights digital arbitragers although they provide little value add in the supply chain. Also tracking down an old film that is 20+ years old, finding it is digitally accessible elsewhere but not where I live. I feel no ethical qualms about opening torrent under those circumstances.

    Music is rarely geolocked. Why is film/TV treated differently?

  7. Australia by labnet · · Score: 2

    Yes, Netflix stopped blocking US content from Australia via DNS spoofers; but the DNS services have already worked around the blockades.

    Netflix gets to save face saying we implemented blocking plans (which they did).
    Users still get to access other regions because of technical workarounds.

    --
    46137
  8. happy by Smiddi · · Score: 2

    Its nothing more than Netflix keeping Hollywood happy - "yes we have done something to stop these pesky VPN'ers, our media overlords"

  9. Re:This bull by qe2e! · · Score: 2

    You read what you wanted to read -- that's not a real error message. "Not not available right now" --- that's a thing. But it never says the country. P.s. you get that message when your internet sucks or when the implementation sucks (e.g. that black friday blu-ray player)...

  10. Hardship of innocents by qe2e! · · Score: 4, Informative

    I've worked in their customer care (recently quit). There is such a thing as false positives, little old ladies who don't know the difference between a proxy and a flux capacitor. And the company line for someone calling about a VPN error? Do **not** help or advise them in anyway except telling them to undo what they've done whatever that was, and call the ISP to help find what default settings should be. Next thing you know, you've got a rep from the ISP calling in because an entire IP block is getting flagged, and nobody can actually cite any particular instruction, marker, or standard for why it's getting flagged and what needs to be done about it. I can tell you this, the corporation looks to weigh the undue hardship of innocents in dollars, and that ought to be incompatible with some ethical systems.

  11. He's lying by jnork · · Score: 4, Interesting

    They're not blocking people who use VPN to bypass geo-blockades. They're blocking VPN users, full stop. Without regard to why they're using VPN.

    I was rather irritated to find that I could no longer use my VPN to access US content from the US using a US VPN IP address. Guys, I'm right here in Sacramento, and dammit, I'm using VPN for security, not to bypass your pathetic little attempts to screw your customers.

    As a result I ended up finding other ways to bypass their restrictions. Which is something I would never have done if they hadn't blocked me in the first place! Morons.

    --
    Cleverly disguised as a responsible adult.