Netflix, Inc. (NASDAQ: NFLX) is lashing out with threats that it will block accounts of people using VPNs to access its services in many countries is being interpreted as mere talk. There is belief that the streaming giant is just trying to cover its legal basis with a view of pleasing movie and TV studios as nothing has been forthcoming since making the big announcement.
In contrast, HBO is asserting a firm grip on its streaming business having sent emails to people using VPN’s to access its services in Canada, UK, and Germany. Netflix continues to lag behind in taking the necessary measures out of fear that such a move may end up affecting revenues from abroad. HBO launched its own streaming service in a bid to stop a mass outflow of people opting out of traditional TV subscription.
Netflix refuses action
Netflix may be reluctant to clamp down on the use of VPNs as most of the users usually end up paying for the service. Blocking VPN accounts may not be the best of moves as most of the people may resort to pirated content, something that could hurt the business altogether.
If Netflix were serious about clamping down on the use of VPNs, then it would have moved with speed to make its content uniformly available in all its market, instead of operating different libraries for different countries. However, it has resorted to using heavy-handed tactics that may end up encouraging piracy.
HBO influences Netflix
However HBO starting to send warning emails to people using VPNs could trigger a similar reaction from Netflix which has been reluctant to do the same.