When Netflix announced its India launch, audiences were delighted thinking that they would get access to its mammoth library of global content. The US-based company priced its services in line with global strategy at $7.99, or the equivalent in Indian rupee. The services in India are available under tiered pricing - Rs 500, Rs 650 and Rs 800 a month.
Most Indian users were disappointed when the online video services provider restricted their access to a very small portion of its library. The company says copyright issues prevent it from giving Indian consumers access to international content. The users, however, figured an easy way out. They continued to access Netflix's US content through virtual private network (VPN), which allowed them to imitate the internet protocol (IP) address of users based in the US. This effectively meant dodging the Netflix firewall without much effort.
However, the company has now started blocking the VPNs and Indian users are being redirected to the Indian site. "Using VPNs or proxies to virtually cross borders violates Netflix's terms of use because of licensing restrictions on TV shows and movies," Netflix said in an emailed response.
But it seems VPNs have figured out a way to beat the new Netflix blocker as well. "NordVPN did have a number of servers blocked, but (it) has found a number of workaround options that are working thus far... Users can connect directly to Netflix server or they can connect to a few dedicated Netflix servers manually. We are also preparing backup workaround options in case Netflix decides to intensify their VPN crackdown. We have received a number of inquiries from other VPN providers checking to see if our service was still working. It is sad to see that some users are being forced to choose between online security and streaming," said Marty P Kamden, CMO, NordVPN, a Panama-based company, in an emailed response.
Netflix, however, said it would keep finding ways to block the international content despite the price differential on content versus costs. "Netflix uses a variety of technologies to properly geo-locate members and to avoid attempts to circumvent proper geo-location," stated the company.
This, experts believe, will hit Netflix more than it expects. Users, who were ready to pay for content, will find ways to illegally access it via torrents or unsafe streaming websites, impacting the company's India revenue stream.
Even Netflix accepts that blocking the users would lead to problems, at least in the near future. "People will always try and find ways to get the content they want no matter (what) the technological barriers (are)," it said.
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