Good Luck Keeping Canadians Out of Your Better US Content, Netflix

​One in three Canadian Netflix subscribers knows how to beat the streaming service's geographic restrictions on its US-only content, according to a survey​ from 2013. Now, Netflix is said to be finally fig​hting back, and cracking down on the tools and techniques long used to circumvent its geographic blocks.

But blocking these tools is something of an uphill battle that doesn't always work as planned—and could even result in legitimate users being barred too.

Virtual Public Networks (VPNs) and proxy servers, two common methods of circumvention, allow users to reroute their connection and mask the origin of their IP address in order to appear as though they're in a country where the desired content is licensed for streaming. Netflix has long had a policy against accessing its content this way, but some VPN and proxy service providers ​told TorrentF​reak that Netflix hadn't actually attempted to block such users until recently.

Netflix restricts access to its content on a geographic basis according to​ licensing agreements with studios that may allow a film to be distributed in the US, but not in Spain, for example. A Netflix representative told Motherboard that the streaming company uses a common technique called geo-filtering, a method of linking a user's IP address to their country of origin, to detect which users are using VPNs or proxies to access content that is typically blocked.

But according to experts, this approach isn't foolproof, and could result in legitimate users being unnecessarily blocked instead.

"While it is possible [to block VPNs or proxy IPs] to a certain extent, geolocation data is oftentimes wrong," said Andrew Lee, the founder and chief creative officer of VPN service provider Private Internet Acce​ss in an email. "IPs that may have been allocated in one region may be reallocated to another service provider, or the same service provider, in a different region. This can lead to unfortunate blocking of access to the streaming service's customers who legally have a right to access said services."

IP addresses, like home addresses, change when you move—say, from your apartment to a coffee shop. IP addresses are recycled frequently, too; you can call up your internet service provider right now and ask for the last time your IP address was changed, or even request a static IP address that never changes (often for a fee). Because addresses change, blocking a user for an IP address that was once linked to a VPN or proxy server is just as pointless as arresting someone because they just bought a house that used to be owned by a thief.

But that's exactly what VPN and proxy providers claim happened when Hulu decided to block VPN access to its site earlier this year, according to anothe​r, previous TorrentFreak report; legitimate US-based users were being blocked based on inaccurate geo-filtering.

If Netflix wants to continue its VPN crackdown, it's going to have to start using some new techniques. According to TorrentFreak, Netflix is already forcing its Android app to use Googl​e's DNS service to contact Netflix's servers. This bypasses the phone's usual DNS settings, meaning that users can't manually change their DNS server to access Netflix via proxy. According to Lee, Netflix could better block users using VPNs by monitoring heavy international user traffic coming from one IP address at different times, for example, or joining major VPN providers themselves to figure out which IPs customers are using to circumvent the company's geographic restrictions.

However, Lee noted, workarounds for these measures are often as easy as switching to another proxy server or VPN.

What remains unclear is why Netflix is cracking down on users accessing their streaming content using VPNs and proxy servers now, given that the company has long banned their use—on paper, at least, according to Netflix's terms of ser​vice. However, circumstantial evidence suggests that the recent move could have been spurred by mounting pressure from movie studios.

According to an email sent by Sony's president of international distribution Keith LeGoy to Sony Pictures Television President Steve Mosko, as reported by ​Ars Technica, Sony was unhappy with Netflix users' penchant for VPN access and wanted the company to do more about it.

"Netflix are heavily resistant to enforcing stricter financial geo-filtering controls, as they claim this would present a too high bar to entry from legitimate subscribers," LeGoy wrote. "We have expressed our deep dissatisfaction with their approach and attitude. I'm sure other studios feel the same way, especially as we are now hearing from clients in Australia, South Africa and Iceland (to name a few) where significant numbers of people are able to subscribe to Netflix."

"This issue is almost certainly going to get more heated, since our goal and Netflix's are in direct opposition," he continued.

Correction: An earlier version of this story incorrectly attributed answers provided by Private Internet Access founder Andrew Lee to Joseph Craig, a communications representative for the company. The story has been updated.