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Research I did a few days ago said that 1.3 million Canadians are using VPNs to illegally buy US Netflix. Now although US Netflix is getting the money, Canadian Netflix is not. Canadian Netflix has to stand or float on it's own merits, and would be able to return a healthier profit and create a better product if those 1.3 million thieves relented, and accepted that they do not deserve superior US Netflix.
Regionally all the Netflix are in (friendly) competition with each other, that if they are not making enough money, a lot of staff will be fired and their library will be gutted, until a more favourable equilibrium is created.
Erm, that's not how it works....
Netflix started streaming nearly 8 years ago in the US. All content licensed is for distribution in the US alone. It is the contracts with the content owners that prohibit Netflix from exporting this material beyond the borders of the United States. Exporting said content outside the country you entered into a legally binding contract with the owner is what makes it verboten for NF. I.E., against the law.
Canada was the next stop for the company, launching there in 2010. Each regional service is a separate division requiring separate licencing (meaning separate contracts and payments) for movies and shows. Even for the
same movies and tv shows. A contract for say, all 6 Trek series on the US service does not mean they can be shown in Canada or the other regions launched afterwards.
The stumbling block doesn't end there. If a tv network, basic cable or pay tv channel in Canada/other country licenses content, then Netflix cannot acquire it for streaming there. Because the preexisting network/channel already contracted to be the one to offer it in that country. The Netflix subscriber in each country can only view the material that has been procured for that region, and we aren't entitled to access content that they've purchased in another.
Netflix allowed it's subscribers who travelled abroad, to access the local version of its service. This is where the VPN users discovered that they could view alternate catalogs from NF's various countries. It was a violation of NF terms of service, but they didn't bother enforcing their rules, allowing non travelers to graze the multiple libraries.
Unfortunately the VPN services brazenly promoted that one could circumvent geo restrictions (insanity...stop blabbing! The studio overlords will come after you!) to view Netflix and brought attention to it to the studios, who pressured the company to take action to prevent it. An action that they finally initiated earlier this year.
