Has Netflix lost its prestige?

Last updated: October 14, 2016

netflix has changed its policyThe most famous site of streaming movies Netflix has changed its policy. All the connections to its services are blocked if VPN services are used for connection. It is considered to be a cat-and-mouse game. Firstly Netflix makes it inaccessible, and then VPN providers upgrade their services for bypassing these restrictions.

Since Netflix’s subscriber growth was slowed down. It led to fall its share price by 14,5%. According to Netflix’s version, the users were shocked by a price rise as legacy price for early subscribers was canceled. Besides, the impending rise was exposed in the press, so it might have influenced subscriber’s decision to cancel subscriptions.

The second version suggests that the problem is a lack of content. The budget is being spent on its own content at other content provider’s expense. In consequences, it has affected the US content which is 40% less. At the same time the content for oversea users is always small, that’s why they prefer using VPN to increase access to the content.

More and more people start using VPN services to bypass restrictions. Such services as ExpressVPN, IPVanish VPN and NordVPN manage to access to Netflix while other services can’t provide such an opportunity. This is also the reason for subscribers to cancel their subscriptions.

One more suggestion concerning the existing situation is the “proxy war”, which is going on between Netflix and VPN services.

Nowadays Netflix is involved into the movement to block “geododgers”. It tries to control geographic restrictions as it the base of its licensing deals. Nevertheless, users may get on with torrenting TV shows and movies. But as the security is in the limelight VPN services are more preferable.

By the way, the increased use of VPNs is attributed to improved privacy which is a kind of necessity for most people. The advantage of usage is a problem connected with the connection speed. The speed is not so high as usual. But users often forget about the drawback.

Because of Netflix’s policy an agreement may be annulled between content producers and providers. Moreover, it may increase the importance of Netflix on the market and it becomes to appeal to audience less. It will be a good chance for local streaming providers to occupy their own territory.

On the one hand the state of Netflix is satisfied, so losing some users does not influence so much. On the other hand, these people who cancel their subscriptions are usually advanced users, so they can impact on Netflix’s reputation commenting, posting in blogs, using social media.