Grey/parallel imports for physical goods are not illegal in Australia. That is why I can buy a cheap DSLR camera that's imported from Hong Kong and sold by a Melbourne importer instead of paying twice the price for the "Australian" version at a local camera shop.
Netflix is actually very easy to set up, there are $2/month DNS services that make it very simple for even the technically inept to configure their Apple TV / iPad / computer to pick up Netflix in Australia. The combined cost of Netflix + DNS service is far cheaper than any local option, and the quantity of content is far greater.
The speed is not really relevant, I think. Whether it's legal or not — and whether it's likely to be enforced — the interesting question.
1) you are lying to netflix, which has you agree to a contract stating you will only watch from within the US.
You are violating a contract you've agreed to.
2) Netflix checks this, and you are explicitly using technical measures to successfully lie to netflix about your location, purposefully deceive a party you've contracted with in order to get out from under contract terms.
I believe this is fraud. If netflix can convince the police to take the case, you could go to jail for this. Advantage : only netflix can try to make them take the case, and they're unlikely to do so.
3) the content you're watching is licenced, with a licence stating it's watch within the US only.
This is copyright violation, or it's more popular term : piracy.
I would argue that watching netflix violating and circumventing their access controls is worse than torrenting.
I don't know if I would consider it worse. To me it feels like the morally better of the two — at least you are contributing some money towards the shows you like to watch, even if not through the proper channels.
I would also argue that Netflix could likely make it harder to circumvent their access controls, but it is probably not in their interest to do so. If it were up to Netflix, I suspect it would be available globally — Netflix only has to enforce the minimum required geoblocking to satisfy the rights holders. If some people get around this, all it means is more business and more mind share for Netflix. (And arguably more business for the rights holders.)
Curse our shortsighted government. http://spectrum.ieee.org/telecom/internet/the-rise-and-fall-...
Also consider I could sign up to netflix with my credit card 'not get access' and initiate a charge back (maybe even after a couple of months of watching through a vpn), the pressure would be exerted through visa/mastercard which australia can somewhat pressure (as they have local assets).
Naturally that goes to the point were Netflix refuses Oz customers the ability to get there service at all and misses out on any part of the Aus market or they commit whole hog and give Aus everything. The other thing to remember is that other small countries may initiate similar policies so it might not be just Aus who misses out.
"Either pay this or we instruct any bank with offices in Australia to refund all payments made to netflix at 150% retroactively for 10 years or cease operation in Australia"
This gives the banks themselves an incentive to go after netflix.
Will they go this far for netflix ? No way, I think, but that's one principle behind international enforcement.
Even though we now have Netflix in Canada, the selection is awful compared to the American one.