I have a lot of friends in the UK, and while I won’t name any names, they’re all quite good at using proxy servers and manipulating settings on their computers to get around blocks keeping them from streaming the Nextflix offerings viewed by users in the United States or Canada or one of the other countries where Netflix is currently operating. Other users, in countries where Netflix has no official offering, also use proxy servers to get access to streaming movies. All of these users pay Netflix subscription fees, so Netflix isn’t losing money, but content providers don’t like it, because having control is what Hollywood companies are all about. So Netflix is going to play ball.
Netflix is going to make it hard for users to get around regional distribution blocks. Currently, a simple visit to a proxy server will allow you to, say, get to UK Netflix to watch something that isn’t offered on US Netflix or vice-versa. It helps when you want to do things like watch British TV not available in the United States, but there’s a reason there aren’t a lot of region-free DVDs able to be played around the world. Studios like to price things to market, and if you could buy a DVD from the US for $5 versus the Australian equivalent of $25 American dollars, you’d do that all day long. I guess the fee for licensing Parks & Recreation in the UK versus a worldwide license fee makes someone more money.
As it is, apparently Netflix has already started clamping down on proxies, so the fun won’t last for much longer if you’re currently a proxy user.
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