Over at investment site The Motley Fool they have an article about the recent news that Netflix was cracking down on VPN users (i.e. members who access the service from outside of their subscription zone). This whole issue is a double edged sword for Netflix. Of course, the terms they have with the content providers specify what regions they can let people watch in. But, the people who are using simple computer trickery to get around this are paying customers – so Netflix is making money.
What to do!
Like Sky Digital satellite service in the UK – that has millions of subscribers outside of the UK in places like Spain and Italy – the best thing to do is to appear to crack down but in reality to turn a blind eye.
The reason is obvious – Netflix makes money from these people. And, I am sure it could be proven, that clamping down on these people doesn’t make them sit at home and stare at a blank TV screen. They turn to piracy.
How many more different use-cases do we need to show that the ‘regionalizing’ system of releasing content doesn’t work and fuels piracy?