The Netflix entertainment platform has millions of subscribers worldwide (a rough estimation of 40 countries), while the majority of those subscribers are in the US. Of course, the US version of Netflix is far better and more qualitative, leading to subscribers of other countries wanting to trade their own version with the original.
Some Hollywood movie studios are trying to force Netflix into banning VPN access, as according to them they lose money when subscribers outside of the U.S. use a VPN connection in order to access the American content, as the licensing terms are breached. Check out below what steps Netflix has taken in regards to this matter and see why you do not need to worry so much about it!
Terms and Conditions adjustment
One step that Netflix has taken towards satisfying the movie makers is the modification of its Terms and Conditions. A new paragraph has been added which now clearly states that the company reserves the right to disconnect subscribers if it discovers that they arenot accessing the Netflix platform of the country they reside.This paragraph has been added around a year ago, but yet there are no valid concerns about Netflix enforcing it. Actually, it seems more like a paragraph added in order to keep the movie studios calm.
The reason we are saying this is because Netflix would have much to lose if they would actually enforce this ban. According to a research, millions of Netflix subscribers live in countries where the service is unavailable, so they can only access it by masking their location with the use of a VPN connection. Although most users share their subscription with other family members, still the total earnings fromthese “VPN user” subscriptions can be estimated to well over $100 per month. A good example of a country not having Netflix service but yet appears to have a good portion of these VPN users is a country also known for its strict regulations in regards to residents accessing online contents, China. As Netflix would most certainly have trouble in officially stepping into this country, the VPN solution applied by this country’s residents allows Netflix to keep its presence there, maintaining a large share of users.
If Netflix would apply the VPN ban, it wouldn’t affect only the countries where Netflix is unavailable. For example, Netflix now has official presence in Australia but as the content provided cannot be compared to the original U.S. content, many Australian residents apply the VPN solution into getting access to the U.S. Netflix.
Benefits of VPN usage for Netflix and its customers
The use of a VPN connection does a lot more than masking your location. It protects privacy and sensitive data while being connected over a public network and assists in keeping yourself protected from cyber-threats. Netflix benefits in terms of earnings by allowing VPN access while customers are making use of VPN benefit by getting access to prime content and are also working securely over a VPN connection.