Netflix tags in PayPal to cut off VPN users, but will it work?

In very convenient timing for Netflix, whose planned expansion to 130 new countries will require a crackdown on people who use Virtual Private Networks (VPNs) to view content that is restricted in their region due to copyright, PayPal has announced that it will stop processing payments to VPN services, BGR reported today.

The reported announcement comes just a few days after one VPN service, UnoTelly in Canada, informed its users that PayPal had ceased processing payments for its customers on copyright grounds. UnoTelly called the decision an attack on “services that enable open and unrestricted Internet access.” However, an Ars Technica article pointed out that UnoTelly’s site claims its SmartDNS service “removes geo-blocks imposed by streaming sites and allows you to watch geo-restricted channels regardless of where you live.”

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Network World Colin Neagle