Netflix Cracks Down On Content Grab
GORANI: Welcome back. This is what's going on with the Dow right now. We were down almost 500 points. Off session lows but still a bruising day. Down 2.5 percent at 15,971. We are back to the levels of about last summer. So is this an accurate reflection of the economic picture or is this a good opportunity to snap up stocks? You have both theories out there. Here's the Nasdaq and S&P for you. In European markets across the board didn't do too well either. There you have it. Not as bad as the Dow but still down. Slumping oil prices are one of the major factors causing the turmoil in financial markets. Prices for crude have fallen below $30 a barrel. CNN asked Africa's wealthiest man if he thinks oil prices will continue to fall.</s>ALIKO DANGOTE, PRESIDENT, DANGOTE GROUP: Easily 2025, you know. It could be 2025. But in a couple of countries it's not a death sentence. You know, it is also an opportunity. I think in Nigeria this will be a lesson for us. I know there are good things that don't come without pay.</s>GORANI: There you have it. Now the video streaming giant Netflix is cracking down on people who use computer tricks to access their content. If you have a VPN because you know the content on Netflix U.S. is better than where you are in the world. Well, possibly you're not going to be able to do that anymore. The California based media company says it intends to block people from using VPN's to watch Netflix programs that are available in other countries but not theirs. CNN's Samuel Burke has been tracking this Netflix action and he joins me now from New York. OK, so I'm asking for a friend here but when --</s>SAMUEL BURKE, CNN BUSINESS CORRESPONDENT: It's legal, Hala. You don't have to worry. We both do it. Let's just admit it.</s>GORANI: OK, that's great. Listen, because the content of U.S. Netflix is better. You have more choice and more movies. When is this going to change?</s>BURKE: It's going to be starting immediately, but the reverse is sometimes true. In the U.K., for example, you guys have Modern Family, all the episodes available there so sometimes here in the U.S. I use a VP and virtual private network which makes Netflix think that I'm in the U.K. so I can watch the U.K. shows. Listen, lots of places have been doing this. Outlets like HBO which is owned by our parent company, Time Warner. I always try to access HBO when I'm in the U.K. and it's getting more and more difficult. So a lot of companies are doing this. China, as well, a lot of businesses depend on accessing Google, which is blocked in China using their VPN has become more difficult. So all around the world we see them cracking down. My advice if you're watching the show on VPN on Netflix, finish it quickly because I think you're only going to have a few weeks left.</s>GORANI: So why are they doing this now? They have clearly known about this for a long time.</s>BURKE: Well, I think they're also wanting to put pressure on the movie houses, on the TV companies that give them their content to say we want to make things available globally. Stop doing these contracts with us that only make it available in the United States, not in the U.K., available in this country and not there. Netflix says clearly listen we want to be a global channel, we want everybody to be able to watch content at the same time, which is part of the goal of the Netflix original series, but even there they have trouble. "House Of Cards," most people think it's created by Netflix so it's available all around the world but it's not. Places like Singapore it's on television stations so they have a separate contract. So it's not available there. I think this is in part Netflix trying to push these companies to make them give them global rights. An interesting stat I wanted to share with you, 21.3 million people in China use Netflix and Netflix isn't even available there. This is all because of the VPN but not for long.</s>GORANI: Aren't they shooting themselves in the foot here? I mean, essentially if you're preventing people from using VPN to access content from other countries, won't people say I don't want Netflix then, I can't access these shows that I was watching easily and in an unrestricted way?</s>BURKE: Interesting that you see that, Hala, because one analyst I spoke today said they might lose some customers in the short term because there are people who are just paying so they can see the American version of Netflix, but think that long term they have proven that their strategies have worked. Hopefully they do get those contract so we can all watch at the same time. I hated when I lived in Mexico and had to wait sometimes a year to see movies that were out in the United States.</s>GORANI: Last question, is there any way around this?</s>BURKE: Absolutely. For every wall there is always a ladder but it's getting more and more difficult. So you'll have to have your IT guy come from work to do it. There will always be a way but more difficult unfortunately.</s>GORANI: It's a minor miracle that I'm able to do anything at all. Thank you very much, Samuel Burke. Have a great weekend and thanks for that report. That I think is of interest to many, many people around the world. We'll have a live check on the markets from New York in a moment. Stay with us. Also ahead, a second wave of vital aid reaches three desperate Syrian cities. The U.N. secretary general says scenes of starvation. We'll speak to the regional director from UNICEF coming up.