How does a site like Netflix restrict access by a user's country? If they are blocking by the IP location of the request, wouldn't it be easy to bypass that by going through a proxy? If so, how would they defend against something like that?
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They use geoblocking which blocks by IP as you say. It is easy to bypass but not easy enough for many people that are now coming online which is why it works and is popular. It's not designed to block everyone, just most people.
The two main approaches people use are DNS proxies and VPN services. You can read more information on this WSJ article where Nicholas Lin of UnoTelly, which provides proxy services, says:
We have not noticed any signs that Netflix is actively restricting the use of accounts that use a DNS or VPN service. Nicholas Lin, UnoTelly
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