Netflix cross-border streaming: Experts doubt company can 'stamp it out completely'

Netflix announced this week it will crack down on virtual border hoppers watching programs restricted to other countries. And this time, say experts, the video streaming service means business.

"I think they're more serious now than they ever have been," says Daniel Bader, technology analyst with the mobile tech site,MobileSyrup.

But don't start hyperventilating just yet if you're using technology to sneak across cyber borders to watch a show like Sons of Anarchy on Netflix U.S. one of the many shows not available toCanadian subscribers.

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Some experts doubt Netflixcancompletely stamp out cross-border watching.

"There's always ways around geoblocking," says Toronto consumer expertKaan Yigit,referringto Netflix's use of virtual walls to keep viewers in their own country.

Cross-border watching craze

As with many streaming companies, Netflixblocks customers from accessing programs in other regions because content licensing agreements vary between countries.

The company has repeatedly claimedit polices cross-border watching. "We employ industry standard measures to prevent this kind of use," Netflixtold CBC News in an email twice last year.

But customers continue to circumvent the company's geoblockswith easeby using technology to virtually relocate themselves. There are even unblocking services that, for a monthly fee, enable Netflix subscribers to cross virtual borders.

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Rampant cross-border viewing has been a bone of contention for contentproviders, which only grant Netflix the rights to stream certain programsin specified regions.

According to Sony Picturesinternalemails from 2013 postedby WikiLeaks, company executives complained that Netflix wasn't doing enough to stop abusers. One suggested the company "semi-sanctioned" border hopping, because it led to more Netflix subscribers.

Pleasingthe content creators

Bader believes now that Netflix hasjust launched in130 more countries, itannounced thecrackdown to show a commitment to keeping viewers inside their borders.

"They are doing a lot of this to placate the rights holders," he says.

The companynow offers its services in 190 countries.Yigit says as the streaming service grows so does the mounting pressure from companies providing the programs.

"Obviously there's some hesitation among some rights holders to license to Netflix so they're trying to be a good corporate citizen,"saysYigit,president ofSolutions Research Group, a Toronto consumer research company.

But news about the crackdown doesn't concern Toronto NetflixcustomerSuzan Lorenz. She also subscribes to an unblocking service so she can hop borders.

"I don't think it's a huge threat,"she says about the clampdown. "It's not something that I'm lying awake at night going, 'Oh my God, Netflix.'"

Shedoesn't believe the company has the ability to wipe out cross-border watching."I'm not technologically savvy, but I can't imagine how they would be able to do that," she says.

Experts also question Netflix's ability to police the problem. "I doubt they could stamp it out completely," says Yigit.

New ways to whacka mole?

In the past, Netflix admitted detecting cross-border watchers was a challenge, likening it to "playing a game of whack-a-mole."

But the company's vice-president of content, David Fullagar, stated in a blog post this week that the technology to crackdown on abusers "continues to evolve and we will evolve with it." He also promised action in the coming weeks.

When asked for more details about theplan to put anend tocross-border watching, the companytold CBC News in an email, "Netflix uses a variety of technologies to properly geolocate members and to avoid attempts to circumvent proper geolocation." It refused to provide details.

Bader says the only foolproof way Netflix could eliminate border hoppingwould be to lock people in the country where they got thecredit card used to pay for the service. But he says that won't happen because the streaming serviceallows customers to watch their country's content when travelling in other regions.

"Essentially they are hamstrung by their own open policies when it comes to cross-border content access," he says.

Bader believes that without credit card checks, unless Netflix hasamazing new technology up its sleeve, it will be difficult to stop unblocking services. That's because, he says, they'll always be looking forways to circumvent whatever measuresNetflixputs in place.

Toronto-based unblocking serviceUnoTellyis already claiming thatdespite the crackdown, it will remain in business. "UnoTelly is confident that we can continue deliver quality service to our loyal and supportive users," said founder Nicholas Lin in an email.

What everyone from Netflixto experts can agree on is that the day will come when cross-border watching won't be such a hot issue. Netflix is continually increasing its offerings in individual countries and adding more original programs. Plus, it's working on providing more global access to shows, which the companyadmits would be the ultimate solution.

"If all of our content were globally available, there wouldn't be a reason for membersto fool our systems into thinking they're in a different country than they're actually in," said Netflix's Fullager in his post.