Netflix’s library of films and television series is currently available via virtual private networks (VPN) for US customers when they are out of the US.
Australian rights holders such as Warner Bros. and Universal Studios are among the film studios lobbying for the block because US users do not need to pay licensing fees to enjoy Australian content when accessed via VPN.
The streaming service has yet to launch in Australia, which is why rights holders are in uproar. Australian rights holders do not currently receive payment when local residents use VPNs to access content they have no license to.
Blocking VPN use may satisfy the urges of Australian rights holder, but paying users would not be able to use the service via a secure VPN.
Netflix has yet to comment on the issue.