Sony Pictures mad at Netflix’s failure to block overseas VPN users

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How is it going to do more harm to their customers than good in the long run? Honest question. As an example, how is VPN usage going to harm French customers in the long run?

Because if Netflix doesn't play fair and act in good faith of the terms of their contract with distribution and rights, then Sony and other content providers are going to compensate for Netflix putting little effort in curbing the problem when it comes time to renew their contract. Now either Netflix will end up paying more for content, which likely means an increase in rates to the consumer, or they will drop the content because they refuse to pay for it which hurts the selection to the consumer. Either way it's a negative impact to the consumer because of Netflix trying to take advantage of short term gains. Those gains and subscribers help their stock price in the short term which is something that benefits Netflix in addition to the additional revenue they are earning from distributing content that they haven't paid for.
 
I'd like a Ferrari for $100. Ferrari is leaving money on the table by not giving me a Ferrari for $100. That's $100 more than they had yesterday that they could have right now. Why won't Ferrari give me a Ferrari for $100?

because ferrari would lose money by doing that. it costs more than 100$ to build a ferrari...
 
Sony is not getting your money. Netflix is getting your money and not paying Sony for it. Is it hard to understand why Sony might not like that?
No one getting the money will be better no doubt, and netflix loosing subscribers should definitly help them put more money into their other country services.
 
Is anyone even bothering to read the article before commenting, saying "down with Sony! Go Netflix", like a rabid mob?

Netflix payed a flat rate to Sony for U.S. based distribution rights based on U.S. geographical data. International users are then gaining access to Netflix through VPNs to watch Sony content, even though Netflix hasn't negotiated for international rights.

Netflix is basically illegally distributing Sony works in other countries, which is why Sony is pissed off.

All the people here saying "But I'm paying my subscription , Sony is just being greedy!", are failing to realize that by accessing Sony content through Netflix internationally, you're paying for illegally distributed content.

Sony is in a partnership with Netflix. They want this relationship to succeed, which is why they're just asking Netflix to do more than "nothing" at VPN usage, which they can clearly deduce through international bank payments.
 
Because if Netflix doesn't play fair and act in good faith of the terms of their contract with distribution and rights, then Sony and other content providers are going to compensate for Netflix putting little effort in curbing the problem when it comes time to renew their contract. Now either Netflix will end up paying more for content, which likely means an increase in rates to the consumer, or they will drop the content because they refuse to pay for it which hurts the selection to the consumer.

Even assuming that the problem is truly of such significance that it will cause Netflix to raise the price and/or drop content, that will still play out very differently depending on the region. For example, if there's no Netflix in your region and you use a VPN to access Netflix, you don't really "lose" anything. I guess loyal, non-VPN customers might get screwed over in the long run, but then (at least outside the US) they already are.

You're also forgetting that this puts a lot of pressure on all sorts of other legal organizations/services/companies, e.g. local media companies, to work on their offerings, which without a doubt should benefit (at least international) consumers. If I look at how much things have changed here due to streaming/piracy, to the better of consumers, I find it hard to believe this is the one thing that will ultimately do more harm than good. For the record though, I don't use a VPN because I still have that faint hope that some day I will not get screwed over.

If someone uses a VPN client to access US Netflix, just so they can finally get the same bang for their buck, I can't blame them.
 
Is anyone even bothering to read the article before commenting, saying "down with Sony! Go Netflix", like a rabid mob?

Netflix payed a flat rate to Sony for U.S. based distribution rights based on U.S. geographical data. International users are then gaining access to Netflix through VPNs to watch Sony content, even though Netflix hasn't negotiated for international rights.

Netflix is basically illegally distributing Sony works in other countries, which is why Sony is pissed off.

All the people here saying "But I'm paying my subscription , Sony is just being greedy!", are failing to realize that by accessing Sony content through Netflix internationally, you're paying for illegally distributed content.

Sony is in a partnership with Netflix. They want this relationship to succeed, which is why they're just asking Netflix to do more than "nothing" at VPN usage, which they can clearly deduce through international bank payments.
Why is it Sony's right to dictate to everyone else how their content should be distributed.Sony likely makes up a small fraction of Netflix content but is now trying to control all of it I don't see how that's right.
 
Is anyone even bothering to read the article before commenting, saying "down with Sony! Go Netflix", like a rabid mob?

Netflix payed a flat rate to Sony for U.S. based distribution rights based on U.S. geographical data. International users are then gaining access to Netflix through VPNs to watch Sony content, even though Netflix hasn't negotiated for international rights.

Netflix is basically illegally distributing Sony works in other countries, which is why Sony is pissed off.

All the people here saying "But I'm paying my subscription , Sony is just being greedy!", are failing to realize that by accessing Sony content through Netflix internationally, you're paying for illegally distributed content.

Sony is in a partnership with Netflix. They want this relationship to succeed, which is why they're just asking Netflix to do more than "nothing" at VPN usage, which they can clearly deduce through international bank payments.

Sony called paying (maybe technically wrong, but clearly better then pirating) consumers pirates, pretty clear cut to me anyway.
 
Why is it Sony's right to dictate to everyone else how their content should be distributed.Sony likely makes up a small fraction of Netflix content but is now trying to control all of it I don't see how that's right.

What? It's Sony's content. They're allowed to control it as they see fit. That's their right as the owner of the content. What do you even mean that Sony is trying to control all of Netflix's content?

Sony called paying (maybe technically wrong, but clearly better then pirating) consumers pirates, pretty clear cut to me anyway.

It doesn't matter if you pay though. If you buy a bootleg disc at a store, even if you don't know it's a bootleg, that's still piracy. You paid for it, you were unaware of it, but it's still pirated content. Sony is making the comparison that someone is taking their content and distributing it without paying Sony for it and I can see how they could draw the comparison.
 
So instead of me paying to use a foreign Netflix to watch a show I couldn't otherwise watch, they would prefer me just torrenting it for free?

Is this the jist of their argument?

Pretty much, since they're saying both are types of piracy.

Companies like Sony really need to stop clinging to their outdated market segmentation business models and get with the new global programme.
 
What? It's Sony's content. They're allowed to control it as they see fit. That's their right as the owner of the content. What do you even mean that Sony is trying to control all of Netflix's content?



It doesn't matter if you pay though. If you buy a bootleg disc at a store, even if you don't know it's a bootleg, that's still piracy. You paid for it, you were unaware of it, but it's still pirated content. Sony is making the comparison that someone is taking their content and distributing it without paying Sony for it and I can see how they could draw the comparison.
All of Netflix is Sony content now? That's news to me!
Also, you're still here shilling for this shit marty?
 
Netflix paid Sony for US distribution rights. Not worldwide rights. Netflix then in turn allows worldwide distribution at the cost of US distribution rights. The rate is based on US subscribers and projected growth in the US. It does not factor in people outside of the US. So Netflix pays less and reaps the benefits while Sony doesn't get any of the money it should from distributing it world wide. Sony doesn't see your money and Netflix does.

Sony not offering their product in my region through a similar service and pricing structure such as Netflix means they get none of my money. By using Netflix through a VPN I am directly giving money to Netflix to fund the purchase of shows for their service. Sony see more of my money though the later method rather than the former. My money going to Netflix does not simply disappear because of draconian localised distribution that the old guard are intent on protecting in a rapidly world-wide connected marketplace.
 
Pretty much, since they're saying both are types of piracy.

Companies like Sony really need to stop clinging to their outdated market segmentation business models and get with the new global programme.

How do you propose they get passed the agreements in place in various regions that Sony and other companies rely on for distribution of their content in that region? That's part of the problem. They are reliant on these distribution chains.

It's similar how Microsoft and Sony don't undercut retailers for their digital distributed games despite there being no physical disc, wholesale costs, etc associated with it. They still rely on retailers and can't piss them off despite having the ability to charge less on their digital stores.
 
All of Netflix is Sony content now? That's news to me!
Also, you're still here shilling for this shit marty?

What are you even talking about? What does this mean?

"Sony likely makes up a small fraction of Netflix content but is now trying to control all of it I don't see how that's right."

Nobody said anything about all of Netflix's content being Sony's or that Sony is trying to control Netflix's content other than you.

It is not piracy because the Netflix customer is not in any way responsible for Netflix/Sony contracts. Simple as that.

If you go to a store and buy a bootleg disc, is that not piracy? You're not responsible for the store or their relationship with the movie studios, but you still bought pirated content. I'm not saying it's the consumer's fault for not realizing it, but it is still pirated content in their possession.

Sony not offering their product in my region through a similar service and pricing structure such as Netflix means they get none of my money. By using Netflix through a VPN I am directly giving money to Netflix to fund the purchase of shows for their service. Sony see more of my money though the later method rather than the former. My money going to Netflix does not simply disappear because of draconian localised distribution that the old guard are intent on protecting in a rapidly world-wide connected marketplace.

Sony doesn't see your money either way. Why would they want another company profiting off that? They do not see more money from the latter method because the fee negotiated is based on figures that don't include you. Your money is completely going to Netflix.
 
Sony not offering their product in my region through a similar service and pricing structure such as Netflix means they get none of my money. By using Netflix through a VPN I am directly giving money to Netflix to fund the purchase of shows for their service. Sony see more of my money though the later method rather than the former. My money going to Netflix does not simply disappear because of draconian localised distribution that the old guard are intent on protecting in a rapidly world-wide connected marketplace.

They get none of your money if you use a VPN, but they also get put in a worse situation negotiating the rights for your region and lose out on the occasional sale by a VPN user.
Don't get me wrong, I understand and share your sentiment, but it's not quite that simple.
 
What are you even talking about? What does this mean?

"Sony likely makes up a small fraction of Netflix content but is now trying to control all of it I don't see how that's right."

Nobody said anything about all of Netflix's content being Sony's or that Sony is trying to control Netflix's content other than you.



If you go to a store and buy a bootleg disc, is that not piracy? You're not responsible for the store or their relationship with the movie studios, but you still bought pirated content. I'm not saying it's the consumer's fault for not realizing it, but it is still pirated content in their possession.



Sony doesn't see your money either way. Why would they want another company profiting off that? They do not see more money from the latter method because the fee negotiated is based on figures that don't include you. Your money is completely going to Netflix.
Talking to you at this point is rather pointless I can see.
 
Talking to you at this point is rather pointless I can see.

It's pointless if you can't even explain what you're talking about. You're not making any sense. Who said Sony was trying to control all of Netflix's content? Why wouldn't Sony have the right to their content? You made those statements, not me.
 
It's pointless if you can't even explain what you're talking about. You're not making any sense. Who said Sony was trying to control all of Netflix's content? Why wouldn't Sony have the right to their content? You made those statements, not me.
They are dictating VPN access I don't understand why I need to spell this out for you.
 
If you go to a store and buy a bootleg disc, is that not piracy? You're not responsible for the store or their relationship with the movie studios, but you still bought pirated content. I'm not saying it's the consumer's fault for not realizing it, but it is still pirated content in their possession.

Netflix is a legitimate service with a legitimate contract with Sony to offer Sony content. Corporate slapfights over contract issues may affect the functionality of the service, but the users are completely in the clear.

You blur the line with claims of piracy so much, the word loses all meaning.
 
How do you propose they get passed the agreements in place in various regions that Sony and other companies rely on for distribution of their content in that region? That's part of the problem. They are reliant on these distribution chains.

It's similar how Microsoft and Sony don't undercut retailers for their digital distributed games despite there being no physical disc, wholesale costs, etc associated with it. They still rely on retailers and can't piss them off despite having the ability to charge less on their digital stores.

How does Netflix work at all then?
 
If you go to a store and buy a bootleg disc, is that not piracy? You're not responsible for the store or their relationship with the movie studios, but you still bought pirated content. I'm not saying it's the consumer's fault for not realizing it, but it is still pirated content in their possession.

It's not a bootleg though. It's an import.

Is buying a Blu-ray, DVD, game or CD from another region piracy?
 
Does anyone understand with Marty's even talking about at this point, Other than Sony is great and I hope they maximize profits while fucking consumers?
 
If you go to a store and buy a bootleg disc, is that not piracy? You're not responsible for the store or their relationship with the movie studios, but you still bought pirated content. I'm not saying it's the consumer's fault for not realizing it, but it is still pirated content in their possession.

Netflix is a "bootleg" service now?

Nah, Sony fucked up in their negotiations vis a vis regional access, and they seem to be trying to redefine their lack of foresight as some sort of victimhood.
 
Sony doesn't see your money either way. Why would they want another company profiting off that? They do not see more money from the latter method because the fee negotiated is based on figures that don't include you. Your money is completely going to Netflix.

So if I bought the shows on DVD/BD from the US I would also be considered a pirate because I am circumventing local distribution methods? Would the same apply to video games? Clothing? A bag of Snickers?

Ridiculous.

If Netflix didn't have any money, they would not be able to buy Sony's shows. I give Netflix money, they give Sony money. The money does not simply disappear on Netflix's end and they get to distribute Sony programs because Sony just gives them away for nothing.
 
They are dictating VPN access I don't understand why I need to spell this out for you.

Netflix doesn't set it's content to be global. They set it to be region based. Sony is asking they enforce that. That's not dictating how Netflix should handle their content. Netflix has already done the job of dividing. VPN's aren't officially supported and are against the ToS on Netflix.

Netflix is a legitimate service with a legitimate contract with Sony to offer Sony content. Corporate slapfights over contract issues may affect the functionality of the service, but the users are completely in the clear.

You blur the line with claims of piracy so much, the word loses all meaning.

Netflix's contract is for US distribution rights. They are not paying worldwide rights. To pay for US distribution but then distribute globally is selling content to people they are not allowed to. It's not that different than a store buying a movie and then making five copies of it to sell to other people.The store paid for the right to sell one copy, not six.

How does Netflix work at all then?

Clearly it doesn't in other regions because of these agreements which is why people are using a VPN connection to get to the US content.
 
Netflix's contract is for US distribution rights. They are not paying worldwide rights. To pay for US distribution but then distribute globally is selling content to people they are not allowed to. It's not that different than a store buying a movie and then making five copies of it to sell to other people.The store paid for the right to sell one copy, not six.

None of that malarky is in the customer's contract with Netflix. The customer is not a party in a Netflix-Sony contract. Sony can take their beef up with Netflix, customers have nothing to do with it.


Clearly it doesn't in other regions because of these agreements which is why people are using a VPN connection to get to the US content.

Err there is still plenty of content in other countries, so clearly your claim about it being impossible to offer content past local distributors is false. Unless you think Sony is a special snowflake of course, but you haven't exactly made that case.
 
Netflix doesn't set it's content to be global. They set it to be region based. Sony is asking they enforce that. That's not dictating how Netflix should handle their content. Netflix has already done the job of dividing. VPN's aren't officially supported and are against the ToS on Netflix.



Netflix's contract is for US distribution rights. They are not paying worldwide rights. To pay for US distribution but then distribute globally is selling content to people they are not allowed to. It's not that different than a store buying a movie and then making five copies of it to sell to other people.The store paid for the right to sell one copy, not six.



Clearly it doesn't in other regions because of these agreements which is why people are using a VPN connection to get to the US content.
Have you actually read their TOS?

You may view a movie or TV show through the Netflix service primarily within the country in which you have established your account and only in geographic locations where we offer our service and have licensed such movie or TV show. The content that may be available to watch will vary by geographic location. Netflix will use technologies to verify your geographic location. THE NUMBER OF DEVICES ON WHICH YOU MAY SIMULTANEOUSLY WATCH IS LIMITED. Go to the change plan information in the "Your Account" page to see the number of devices on which you may simultaneously watch. The number of devices available for use and the simultaneous streams may change from time to time at our discretion.
I don't see anything that says I can't use a VPN. It says " primarily within the country in which you have established your account" It doesn't say ONLY and it doesn't say "You can't use a VPN."
 
Netflix is a "bootleg" service now?

Nah, Sony fucked up in their negotiations vis a vis regional access, and they seem to be trying to redefine their lack of foresight as some sort of victimhood.

Netflix is broadcasting content in a region that they are not allowed to distribute. Aereo was slapped down legally for doing this. You cannot distribute content that you don't own and profit off it in places that were not agreed upon.

Sony didn't screw it up. Netflix is just in breach of their deal.

So if I bought the shows on DVD/BD from the US I would also be considered a pirate because I am circumventing local distribution methods? Would the same apply to video games? Clothing? A bag of Snickers?

Ridiculous.

If Netflix didn't have any money, they would not be able to buy Sony's shows. I give Netflix money, they give Sony money. The money does not simply disappear on Netflix's end and they get to distribute Sony programs because Sony just gives them away for nothing.

You can't compare physical good with digital goods in that way. Why is it hard to understand that Netflix is paying a fraction of what they should be paying if they want to distribute it worldwide and getting away with it?

None of that malarky is in the customer's contract with Netflix. The customer is not a party in a Netflix-Sony contract. Sony can take their beef up with Netflix, customers have nothing to do with it.
That's what they did. They went to Netflix. They didn't go to consumers.

Err there is still plenty of content in other countries, so clearly your claim about it being impossible to offer content past local distributors is false. Unless you think Sony is a special snowflake of course, but you haven't exactly made that case.

Nowhere did I say they couldn't distribute any content. The point is a lot of content is locked up behind these distribution deals which is why they aren't available to stream in other regions and why people have to resort to going to the US stream.
 
Okay, so I'm Dutch, I pay for Dutch Netflix. When I'm abroad, I get that country's Netflix. How exactly does that work, payment wise Netflix to Sony?
 
You can't compare physical good with digital goods in that way. Why is it hard to understand that Netflix is paying a fraction of what they should be paying if they want to distribute it worldwide and getting away with it?

Last time I checked a Ferrari is a physical product.

So if I bought the shows on DVD/BD from the US I would also be considered a pirate because I am circumventing local distribution methods? Would the same apply to video games? Clothing? A bag of Snickers?

Ridiculous.

If Netflix didn't have any money, they would not be able to buy Sony's shows. I give Netflix money, they give Sony money. The money does not simply disappear on Netflix's end and they get to distribute Sony programs because Sony just gives them away for nothing.

Shipping forwarders should also be outlawed.
 
I actually think Sony have every right to be upset with Netflix in this situation, for a whole variety of reasons that have been discussed upthread. What they don't have is the right to label people who want to pay money for quick, accessible, good quality access to their shows pirates, because they happen to reside in a country other than the US/UK/Canada. That's a hubristic, embarrassing and wrongheaded attitude.
 
Last time I checked a Ferrari is a physical product.

The Ferrari statement was an example of asking for something unreasonable and expecting it just because you're offering money and then being baffled when they don't want your money. It was not a direct comparison of digital versus physical.
 
You can't compare physical good with digital goods in that way. Why is it hard to understand that Netflix is paying a fraction of what they should be paying if they want to distribute it worldwide and getting away with it?

I buy a Steam key from outside my country, say through Amazon, and register it to my account because the game is either considerably cheaper or flat out not available in my locality. Am I a pirate?

Shipping forwarders should also be outlawed.

Mail Pirates.
 
Netflix is broadcasting content in a region that they are not allowed to distribute. Aereo was slapped down legally for doing this.

You cannot distribute content that you don't own and profit off it in places that were not agreed upon.

Sony didn't screw it up. Netflix is just in breach of their deal.

Actually Aereo was slapped down legally for providing content it was not paying for at all, nor did it have any form of consensual agreement with rights holders.

Not the same situation as Netflix. Another bad comparison from you.

Yeah, Sony screwed up. They very likely know Netlfix isn't in breach of contract since they block non-US IP addresses, but they probably also know that Netflix is making large amounts of money from non-US subscribers using VPNs. But since this doesn't seem to be illegal under US criminal or civil law, they bitch and moan about it instead because they have no other recourse, demonstrating how superlatively they undervalued their sale of content to Netflix's distribution.
 
Try forcing the Sony exec to watch nothing but the UK Netflix catalogue for a year and see how he feels then. It's a pitiful selection. I think Brooklyn Nine-Nine is the only decent thing we've got on there in over a year, and we're literally just up to date with the Doctor Who episodes (A UK produced show!) that the US has had for months.

If they block VPN/Hola, I'll simply unsubscribe, and I know plenty British friends who'll do exactly that. It isn't piracy, and god forbid I want more content for £7 a month. Whoever's fault it is for not providing sufficient content, the IP owners or Netflix itself, it certainly isn't the consumer's fault. And the division between the quality of content between US/UK is pathetic.
 
That's what they did. They went to Netflix. They didn't go to consumers.

Indeed, that's because they knew from the start that this has nothing to do with piracy. They merely got salty at the fact that their archaic licensing practices, much like most of their activities these days, were failing to profit them.
 
Content regionblocking needs to fucking die.

Actually Aereo was slapped down legally for providing content it was not paying for at all, nor did it have any form of consensual agreement with rights holders.

Not the same situation as Netflix. Another bad comparison from you.

In China, Chinese streaming services like Sohu legally license TV shows and movies and pays a much smaller fee than say, Netflix, because not as many Chinese people watch US TV shows (compared to say US viewers watching US shows). They also pay a very small fee for the ability to license some Chinese shows to US audiences (because the number of U.S. viewers watching Chinese shows on Sohu are very small). So, if you have a US IP and you try to watch a US show on Sohu, it won't let you, but you are free to watch some Chinese shows (some Chinese shows are blocked, though, depending on the license).

Now, do you think it is okay to get a VPN and pretend you are a Chinese user, so you can watch the U.S. shows for free (with Chinese ads for powdered milk and F2P games that you will never buy)?

http://www.mediabusinessasia.com/article.php?id=672
Prices for US shows are also rising, but their relatively small viewer base keeps competition and inflation in check. Foreign content will always be a nice-to-have for China’s video sites, especially in the wake of new regulations limiting how much sites can import and requiring new approvals before they can be shown.

...

In 2009, Sohu became the first Chinese site to buy US shows for its video portal, paying upfront for shows in a market where piracy was rife.

Five years later, the government has tightened the noose on pirate sites, and license fees for Hollywood shows are rising each year. Sohu now airs 70 day-and-date shows from the US, 20 on an exclusive basis, showing properties ranging from House Of Cards to The Simpsons to Ellen DeGeneres.
 
I buy a Steam key from outside my country, say through Amazon, and register it to my account because the game is either considerably cheaper or flat out not available in my locality. Am I a pirate?



Mail Pirates.

Doesn't Valve ban accounts that use VPN to circumvent the region to access cheaper foreign keys?

Actually Aereo was slapped down legally for providing content it was not paying for at all, nor did it have any form of consensual agreement with rights holders.

Not the same situation as Netflix. Another bad comparison from you.

Yeah, Sony screwed up. They very likely know Netlfix isn't in breach of contract since they block non-US IP addresses, but they probably also know that Netflix is making large amounts of money from non-US subscribers using VPNs. But since this doesn't seem to be illegal under US criminal or civil law, they bitch and moan about it instead because they have no other recourse, demonstrating how superlatively they undervalued their sale of content to Netflix's distribution.

It's not a bad comparison because they were distributing content that they did not have the rights to. Getting some form of rights to distribute content doesn't get you unlimited rights to distribute content.
 
How long you think we can keep Marty posting on how Sony is in the the right here? He's at 53 posts and counting, I think we could push him past 100 if we work at it.

Doesn't Valve ban accounts that use VPN to circumvent the region to access cheaper foreign keys?
He didn't say anything about using a VPN, he said buying a key off Amazon.
 
I buy a Steam key from outside my country, say through Amazon, and register it to my account because the game is either considerably cheaper or flat out not available in my locality. Am I a pirate?

It's slightly better because Amazon actually paid for the individual Steam key you bought.

Region locking is stupid and doesn't help anybody. Especially in this globally connected world.

It's true. However, it doesn't mean you can use it as an excuse to justify your action.
 
It's slightly better because Amazon actually paid for the individual Steam key you bought.



It's true. However, it doesn't mean you can use it as an excuse to justify your action.

Justify what? Him paying for a LEGAL service and using a LEGAL vpn?

Why is it okay for Valve to ban someone who uses VPN if you're defending using VPN for Netflix?
Please point out where I said that it's okay for Valve to do that. I'll wait.
 
It's not a bad comparison because they were distributing content that they did not have the rights to. Getting some form of rights to distribute content doesn't get you unlimited rights to distribute content.

They did though. The issue isn't "did they have the right to distribute this", the issue is "in what ways do they have the right to distribute this".

This former is a question settled by ABC v. Aereo, the latter is a question that hasn't been settled at all, but you're pretending has been answered by the former.
 
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