VPN Articles and News

Netflix Says Business Not Affected By VPN Ban

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Saturday, November 19th, 2016


While the online streaming fans suffered a big setback when Netflix decided to block VPNs and SmartDNS services, the service provider itself is having little to no effect on its business after implementing the ban. This was revealed by the company’s CEO Reed Hastings while addressing the investors after the company’s latest quarterly results were published. The latest financial results seem to validate the company’s decision to block unblocker services even though it was opposed by millions of subscribers as well as many experts from the industry.

Addressing Netflix’s investors in the latest earnings call, Hastings revealed that the company added a record 6.74 million subscribers in the first quarter of 2016 despite implementing the VPN and proxy ban. The number surpassed the previous record of net addition of 5.59 million subscribers which was set in the fourth quarter of 2015. However, it must also be said that the numbers could be inflated because the company rolled out its services throughout the globe in the first month of 2016. Subscribers in many countries are having their first brush with online streaming after the Netflix launch so the number of net addition of subscribers is likely to remain high during the next few months (or may be even years).

Brushing aside the concerns of streaming fans who were using VPNs to access the service, Hastings stated that the number of users using such dodgy tactics was in fact very small. However, he did admit that the VPN community was highly vocal which explains the hue and cry raised after the company went ahead with the VPN ban. Stressing that the ban had virtually no impact on Netflix’s business and service, he even dismissed the protests raised by the VPN community as inconsequential to the company’s overall business.

Although Netflix is happy that its business is not getting impacted even after implementing the ban on VPN and SmartDNS services, subscribers are still looking for ways to bypass the ban and access their favorite shows from different parts of the world. A lot of streaming fans have turned to piracy while some have found unblocker services that are still able to bypass the Netflix ban. However, such unblocker services are unlikely to work in the long run since Netflix is constantly tweaking its filters and is finding ways to block VPN services.

Even though the Netflix service is now available in a majority of countries of the world, the content available varies significantly from one country to another. The company must address this issue fast because this is reason why people are using VPNs and unblocker services in the first place. Streaming fans simply don’t want to wait for weeks (or even months) for their favorite shows to appear in the local Netflix catalog and the company must respect that. So while the piracy is not having a big impact on the company’s business as of now, the company must move fast to make similar content available throughout the world or risk facing a downturn in its business in the future.


November 19, 2016
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