Sony Pictures mad at Netflixs failure to block overseas VPN users
- Thread starter ComputerMKII
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mrmisterwaa
Neo Member
You may want to check out this site - I found it while I was browsing through looking for comparisons between different Netflix websites.
Except that's not true. Go to netflix.com from Australia and this is what you get:
You need a VPN before you can even sign up for the service. And they are allowed to sell users located within the US. I'm fairly sure their license agreement doesn't stipulate the credit card also has to have been issued by a US based bank.
ComputerMKII
Banned
When all countries have the same laws, region locking will lose its purpose but for the time being, I guess we'll have to deal with it
It is true that this is not illegal for the end user (but i would guess that it violates the TOS that you agree to when you sign up for Netflix.)
But i know that what Netflix is doing is breach of contract with the movie studios, in the contract they sign it specifies that they will only stream the movies to country YX for Z piles of money. So basically the movie studios could drag Netflix to court over this and accuse them for distributing movies illegally.. this is ofc not the best way to do B2B relationships, so Sony is currently only being slightly upset over the situation.
In the end, others distributors could actually sue Sony because they might have the rights to a movie in other countries, therefore the agreement Sony made with Netflix violates the terms they where promised on a movie.
Marty Chinn
Member
Sony is in the right and Netflix is in the wrong on this. People saying otherwise really don't get the bigger picture of all this. Everyone saying it's not the consumer's problem realize that if Netflix doesn't act in good faith, then come time for contract negotiations, there's a good chance all the content providers will raise their prices to compensate for Netflix unwilling to take steps to limit potential unauthorized users from accessing the content. Then your subscription rate goes up or the amount of content drops.
Sony gets no more or no less money doing so. So why would Sony care? In fact why would Sony want Netflix to profit off it while they don't? They'd rather you pirate I would imagine.
Sony gets no more or no less money doing so. So why would Sony care? In fact why would Sony want Netflix to profit off it while they don't? They'd rather you pirate I would imagine.
Needing a VPN or some chrome extension is not an impediment that anyone takes seriously, so why should Sony? Netflix knows full well what is going on here, and are fine with it because it makes them money -- as noted in the email. Pointing out that simply going to Netflix.com gives a "we don't operate here" message is missing the point entirely. They're still operating globally with a wink and a nudge.
I have no insight into what specific measures their contract requires, since it is not discussed in the email. What we do know, because it is actually discussed in the email, is that Netflix does not have the rights to stream content to users in Australia (as well as the other countries mentioned) but is knowingly doing so. One reasonable way of preventing that -- which Sony is asking for -- is limit foreign payment instruments.
Zoe
Member
The issue is that people who live outside of the countries that offer Netflix, such as Australia, or in countries that don't offer the same content, such as Canada, people are using VPN's to get access to the countries that do have what they want.
I've never heard of the DVD service locking down the streaming to one country. Got a link?
Yes, that's what happens. It happened to me and it's the only reason I cancelled the disc service.
Yeah, this is pretty much right.
Executives and other people not grounded in any sort of reality think that if they restrict the content, people will inevitably pay for it instead. These are the people behind DRM and other shit that just doesn't work.
Netflix and other reasonably priced services are much like Steam sales, in that they've proven an effective way to combat piracy - by making things so convenient and cheap, pirating seems like work by comparison.
teruterubozu
Member
Sorry no specific link but google will show a bunch of threads of people complaining about it. I tried to set up Hola on my friend's account (who had DVD service) and a message came up saying "not authorized" and so on. So I looked it up and it seemed to be the case with people with DVD accounts. Many folks thus made a separate account. It could be just Hola, not sure about other VPN services.
Odd, first time I'm hearing about that. Guess that just shows how many people use both lol.
Marty Chinn
Member
They would rather Netflix not get money and benefit without paying Sony a dime for it.
Think of it this way, a restaurant offers an all you can eat buffet for $10. You pay your $10 and then invite friends to come with you and charge them $2 to eat off your plate. The restaurant would rather those people steel food than the guy charging $2 to eat off their plate because in either case the restaurant never sees a dime out of it but they do take issue of someone profiting off it.
Without context, this is a hilarious reaction.
speculawyer
Member
But that isn't easy either. And in fact SONY themselves tacitly allow this. Go look at the Amazon Top 100 of bestselling videogames.
http://smile.amazon.com/best-sellers-video-games/zgbs/videogames/ref=sv_vg_12#1
Up around the top, you find a slew of PSN codes being sold. Those are foreigners using USA based credit cards to buy PSN codes so they can buy games cheaper on PSN USA.
So SONY wants to Netflix to stop something Sony allows to happen.
Yup. I will never have a TV subscription, so all of my media is either streamed or downloaded. I'm more than willing to pay monthly fees for convenient, legal services. I pay for Hulu, Netflix, and I pay $5 a month to a VPN service. If Sony removes their items from Netflix, then I will just not consume their media anymore, meaning they will receive fewer dollars from me and I will be less inclined to watch Sony sequels, etc in the future. Likewise, if Netflix/Hulu entirely bans VPNs, then I stop paying for those services, and stop paying for my VPN service. All of that income is lost to the entertainment industry as a whole, since there is no alternative where I live.
I'm sure others have already commented on this, but their assessment is ass-backwards. They are complaining of the people who are finding ways to PAY to view for programming. By shutting them down, they'll only force more and more people to look for the same thing elsewhere and likely for "free".
From the cursory glance I took of the article, it also seems to be a tactic as they begin to launch their service in earnest. Perhaps they are trying to get people to walk away from Netflix in other markets in time for their launch???
jts
...hate me...
Isn't the amount that Netflix pays to content providers scaled to the membership size somehow?
I have to say, I doubt it's a fixed amount irregardless of userbase size or viewership. That's not logical at all. But then again, prove me wrong.
But if I'm guessing right, by losing region-bypasser users, Netflix's declining userbase size would have an effect on how much Netflix content providers get too, I'd imagine, weather directly or via future negotiations.
Marty Chinn
Member
killer rin
Member
Paying Customers are Pirating Movies!?! Quick, someone tell the FBI
Seriously though. If you dont want International Users to use VPNs, maybe offer them the ability to get the content on their local services.
Not Spaceghost
Spaceghost
Correct me if I am wrong but I think Netflix has to pay money per set plays unrelated to total membership size.
Like every 100 plays of a movie they have to give 10 cents to Sony or something. So honestly, the more plays available the more money companies who rent their content out to netflix make.
irregardless isn't a real word 
systematic
Unconfirmed Member
Nope, Netflix pays a flat fee for the content. If they paid per set of plays it would mean Netflix would have to share viewer data with the studios and they definitely don't want that to happen.
figadapaura
Member
At least I'm paying for it. Jeez.
What legal...paying sub service allows you to view movies that have just released in theaters? Not that cam BS...but the actual movies the companies allow to be on the service while it's still in theaters.
Aquamarine
Member
I think the two companies need to meet halfway.
Netflix needs to accept worldwide licensing fees for all its shows, but Sony needs to lower their fees to compensate for the frustrating situation this puts Netflix in.
Opus Angelorum
Member
Fuck you Sony.
n00bsauce87
Member
I guess you just can't win. Companies think it's illegal to pay for a service. I get why Sony is upset from the first page, but it could be worse. You can always through you salt at torrenting sites. At least you'll get sympathy there.
D
Deleted member 1235
Unconfirmed Member
don't listen netflix I am enjoying my illegal paid subscription!
having said that, I have to 'trick' netflix, wtf is sony talking about?
having said that, I have to 'trick' netflix, wtf is sony talking about?
Yeah, like healthcare, water, food, and shelter. It's gonna happen.
figadapaura
Member
What a strange thing to say.
D
Deleted member 17706
Unconfirmed Member
They are calling Netflix pirates. Distributing content to which they have no rights.
jts
...hate me...
Then it's on Sony. I find hard to understand how can Netflix actual size, directly or indirectly not be a factor to negotiations, and only the full potential market. Then Sony would get the same fee weather from Netflix or from Mom and Pop start a Streaming service.
Then it's also on Sony to re-negotiate the contract accordingly.
I'm thinking that Sony is probably more worried with what they lose from not tapping into world market asymmetries, specifically not getting a larger revenue from overseas costumers, where prices are steeper.
That's more what I'm thinking.Correct me if I am wrong but I think Netflix has to pay money per set plays unrelated to total membership size.
Like every 100 plays of a movie they have to give 10 cents to Sony or something. So honestly, the more plays available the more money companies who rent their content out to netflix make.
irregardless isn't a real word
Sorry, not a native speaker and Safari didn't correct me :O
TheBryanJZX90
Member
As a consumer I would like access to everything without restriction as well, but I do wonder if perhaps it's not as cut and dry as you think. In particular, I could see all shows being licensed and created for a global market having a negative effect on the range and diversity of content produced.
How about supporting local business?
Ollie Pooch
In a perfect world, we'd all be homersexual
Fuck off, Sony.
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