Observers are sceptical about how good Netflix will be at stopping users from watching television shows and films from its American site.
The on-demand video streaming service announced yesterday it will crack down on 'unblocking' services that allow viewers anywhere to watch shows intended to be available only in certain countries.
Internet New Zealand chief executive Jordan Carter said the situation will turn into an arms race between Netflix and those trying to get around it.
Despite many customers threatening to quit Netflix because of the crackdown, he does not believe New Zealanders will leave the streaming service in droves.