The recent crackdown operation has outraged international viewers saying that it could affect membership.
Netflix Inc. has made itself a global TV network with the massive international expansion in about 130 countries. The company now offers services to customers in 190 countries across the globe and has almost 75 million subscribers. The global expansion plan came in mind as the domestic user growth of the company stalled in the past three to four months. This worried Netflix and it decided to take appropriate action, which, so far, is fruitful as well. International expansion is indeed driving growth but it is not too easy to be everywhere.
When the streaming giant announced about expanding its services in 130 countries simultaneously, it also said that being everywhere is not easy. Not a single customer from 130 countries faced any technical glitch during the process but still one factor can hurt its performance. According to the analysts at Bank of America Merrill Lynch, it has a big problem abroad, which can hit right where it hurts.
Everyone knows that the content library of Netflix for the United States region is far more superior to any other region. The US library is three times bigger i.e. it has three times more online movies and TV shows than other major subscribing countries, including Canada and the United Kingdom. This is still bearable but the US content is ten times more than that of the newly launched countries, including Australia, UAE, and most parts of Asia. In this business, content is the king and many subscribers showed their discontent over the size of other local region libraries.
Due to this, many streaming subscribers were involved in geo dodging tricks such as using a VPN service to access Netflix in order to get hands on the US library. Initially, it was practical but as the pressure mounted, the streaming service provider started a crackdown on such users. The content license owner did not like that the subscribers were changing their primary locations to view other region’s content. Therefore, to be on good terms with them, Netflix began blocking VPN users.
Many VPNs are now in the blacklist of Netflix. This is a short-term victory for the company. The operation outraged international customers. According to a recent study which surveyed subscribers who only used VPN services to access Netflix, 61% of the participants said that they will either cancel or see their membership expire after a month if the blockade continues for a long time. The viewers want their desired content to be in their local regions but so far, the content is still shabby besides from the US market.