Why Netflix Tolerates 30 Million VPN Users
Netflix is expanding rapidly, thanks to the global accessibility possible through VPN. Users prefer on-demand streaming services that offer premium content and are not willing to submit to geo-restrictions, making Netflix's availability as controversial as it is popular.
singapore, Singapore, November 23, 2015 (Newswire.com) - This was a significant year for Netflix. The subscriber count crossed the 70 million mark with the launch of Netflix Australia. However, most notable was Netflix’s acknowledgment that 30 million subscribers access the content library through Netflix VPN services. It became clear that Netflix is following a three-tiered business strategy. The service is (1) expanding, (2) bringing in unique content and (3) permitting VPN access.
Lead Researcher and InfoSec blogger at VPNRanks, Danish Pervez, stated that Netflix’s refusal to implement anti-VPN measures is a reflection of CEO Reed Hastings implicit belief that paying users have the undisputable right to access the Netflix content library - regardless of their location.
VPNRanks.com is a content intensive review website that keeps a close eye on developments that impact internet security and online privacy. The latest research by VPNRanks is part of the recent series of studies aimed to generate a transferrable and practical understanding of user preferences.
“Think about it”, said Danish. “Online entertainment bigwigs like Sony and BBC are cracking down on VPN, torrent and P2P services, while Netflix couldn't care less. We won't deny that all of this might change in the future, but the very act of allowing VPN users to stream Netflix content from around the world is an acknowledgement of the viewers' right to internet freedom”.
Giving users the liberty to unblock content via VPN has resulted in the creation of a contorted freemium business model that is helping Netflix sustain visibility in the target demographic. Simultaneously, the service is progressively growing as it braces to capitalize on the dominant position that this strategy will inevitably allow it to acquire. However, constant analysis by VPNRanks reveals that the service is not growing fast enough. It must eventually either innovate to introduce a brand new globally accessible business model, or become a text-book case study when it is left behind by a shinier and braver competitor.
Also, Netflix may be expanding to ensure wide-spread availability, but licensing/legal issues continue to make it impossible for the service to give users access to a universal content library. For instance, Netflix Australia and Netflix US offer significantly differing content to users; forcing users in Australia to use VPN in order to unblock content exclusive to Netflix US audience.
VPNRanks closely analyzes VPN search/demand trends for online streaming services. The data indicates that the constant need for VPN and Netflix's rising profitability index is driven by consumers' insatiable demand for variety. Users want to quit cable and are willing to pay a few extra dollars if it unblocks Netflix or quadruples their Netflix library.
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