Netflix, Inc. (NASADAQ:NFLX) is not the only online content producer who has to deal with the growing clout of Virtual Private Networks or VPNs in delivering geographically-restricted web content. From Hulu to BBC iPlayer, besides Skype, all find a compelling need to deal with geo-location morphing sophistication of VPNs.

How does VPN work?

Simply described it is an elaborate system of private computer networks that are ‘Virtual’ in character, masking internet traffic by using a critical security feature called, encryption. The Virtual Networks are successful in preventing content producers and similar service providers or even government’s from identifying the real location of the end user.
For users in nearby New Zealand, it takes a simple VPN subscription of less than $45 to $50 a year to access the latest, freshly-minted online or entertainment content that the likes of Netflix, Inc. (NASADAQ:NFLX) can offer.

Technology sophistication drives VPN use

Researchers of digital consumption patterns point out that the reasons for users to seek VPNs to access quality content producers and online distributors at a global level is due to the ease of availability of such technology.

Moreover, professor at Columbia Law School, Tim Wu, opines that copyright and distribution perceptions have clearly changed with internet technology advances. As professor of media and copyrights at CLS, Wu reports that the current blinkered-limitation of the online distribution industry that technology is not available worldwide is at the root of VPN use.

Territorial Telecast set to change

Experts such as Wu predict that, all it takes is for a simple hardware or software solution which will allow consumers to access entertainment, without geo-boundaries will usher in new generation of online entertainment and content distribution.

Netflix, Inc. (NASADAQ:NFLX) has definitely been quick to identify the need to reach global consumers and is all set to launch it’s services in New Zealand soon. In the meanwhile, a need for technology-rethink by such giant content producers, for simplified, low-cost access is definitely a demand that global consumers echo!