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What exactly does Netflix stand to gain from making it harder for its non-american subscribers to VPN the geoblocked content? Surely they must have predicted a

by cazum 10y ago

What exactly does Netflix stand to gain from making it harder for its non-american subscribers to VPN the geoblocked content? Surely they must have predicted a substantial drop in subscription rates as soon as people realize they can't watch the good stuff. It just seems like international-marketshare suicide.

fossuser 10y ago
My guess is that Netflix has now positioned themselves as the first global 'television' network. They hopefully have enough power and leverage to stop the content producers from stupidly restricting access via region, but they're not able to do this effectively if users can easily bypass the restrictions. If it doesn't work out then at least they'll get a global audience for their own content and the rest will go back to piracy.
- skykooler 10y ago
  They don't even have a global audience for their own content - House of Cards isn't available in many countries because Netflix sold the TV networks exclusive distribution.
pjc50 10y ago
I suspect they were given ultimatum(s) from the content copyright holders, and decided to keep the content but lose the international viewers. Then this can be used as leverage in the ongoing negotiations.
petra 10y ago
In order to make content companies cooperate with them on international expansion, i assume content creators demanded this, so they could still play the old game of selling content differently in different places - with a simple reasoning - more control = more revenues.
rtkwe 10y ago
The deals they've signed with companies allow them to distribute shows X, Y, & Z in say the US other companies have the rights to that same show in Canada or the UK. Netflix can't just distribute the copyrighted content wherever they want and keep the media creating companies they rely on for content coming back to renew deals.
ebiester 10y ago
I'm guessing it had to do with pressure from international rights-holders.
rhino369 10y ago
If netflix lets users from across the world access their US service, US content owners are going to demand payment based on netflix's global subscriber base. A title that was worth 1 million for streaming rights in America, might be worth 3-4 million worldwide. The US companies are going to demand the 3-4 million. The amount of people who can figure out a VPN solution is probably not that substantial.

by cazum 10y ago

fossuser 10y ago

My guess is that Netflix has now positioned themselves as the first global 'television' network. They hopefully have enough power and leverage to stop the content producers from stupidly restricting access via region, but they're not able to do this effectively if users can easily bypass the restrictions. If it doesn't work out then at least they'll get a global audience for their own content and the rest will go back to piracy.

skykooler 10y ago
They don't even have a global audience for their own content - House of Cards isn't available in many countries because Netflix sold the TV networks exclusive distribution.

pjc50 10y ago

I suspect they were given ultimatum(s) from the content copyright holders, and decided to keep the content but lose the international viewers. Then this can be used as leverage in the ongoing negotiations.

petra 10y ago

In order to make content companies cooperate with them on international expansion, i assume content creators demanded this, so they could still play the old game of selling content differently in different places - with a simple reasoning - more control = more revenues.

rtkwe 10y ago

The deals they've signed with companies allow them to distribute shows X, Y, & Z in say the US other companies have the rights to that same show in Canada or the UK. Netflix can't just distribute the copyrighted content wherever they want and keep the media creating companies they rely on for content coming back to renew deals.

ebiester 10y ago

I'm guessing it had to do with pressure from international rights-holders.

rhino369 10y ago

If netflix lets users from across the world access their US service, US content owners are going to demand payment based on netflix's global subscriber base. A title that was worth 1 million for streaming rights in America, might be worth 3-4 million worldwide. The US companies are going to demand the 3-4 million. The amount of people who can figure out a VPN solution is probably not that substantial.