Netflix modifies policy to cancel services for users employing Virtual Private Networks
In a bid to address piracy and content unavailability, Netflix CEO Reed Hastings has suggested that a global service without regional boundaries could be the solution. This shift comes as Netflix faces increasing competition with around 70 million subscribers, one of the largest audiences in the world.
Hastings believes that by achieving a global service, Netflix can focus on addressing piracy, which he believes is partly due to content unavailability. Users often set their VPN connection to the US to justify their membership fee due to the imbalance in content availability.
In January, Netflix denied plans to crack down on VPN use, but the new terms of service may heighten suspicions. The company is now modifying its terms of service to allow account termination for users who use a virtual private network (VPN) to view content licensed to a different country.
This move comes as Netflix is under pressure from production studios, whose deals depend on content being released in different regions at different times or entirely restricted from certain countries. The companies pressing Netflix to restrict or stop users from accessing content via VPNs to watch shows from other countries include major streaming services and rights holders enforcing regional licensing agreements.
One Reddit user stated that people pirate content because it is not easily accessible. To stop piracy, it is suggested that content should be made available and easily accessible. Reed Hastings echoes this sentiment, stating that the basic solution is to make Netflix's content the same all around the world.
As of March 2015, Netflix US offered 7,200 unique titles, compared to 2,700 in the UK and 1,120 in Australia, suggesting an imbalance in content availability. The potential solution to this issue, as proposed by Netflix, is a global service with no regional boundaries.
The article does not mention any specific advertisements or repeat earlier facts about the reasons for production studios' pressure on Netflix or the piracy of shows like Game of Thrones, which is the most pirated TV show in the world due to viewers having to wait weeks for episodes if they don't live in the US. Users who do not agree to the new terms will be unable to view content and must cancel their membership.
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