The explanation is that distribution rights are sold by territory because most old school distribution channels are by territory. And content is usally financed by the sale of rights (usually before anyone has seen anything).
But streaming is becoming more and more important and those deals will be reviewed.
To give you an example, when Netflix opened in my country, House of Cards wasn't in the catalogue. That's a show produced by Netflix.
But that was because Canal + Afrique held the rights.
A few months ago, it was added. Most likely because the contract expired or because they renegociated.
The fact that there is an explanation for this geoblocking doesn't mean that we aren't being treated differently.
Fortunately, Netflix is putting a lot of effort in their own content to prevent exactly this quagmire of regional licensing. They are well aware that it is one of the biggest complaints their customers have.
Oddly enough, the new Star Trek series will actually be on Netflix worldwide except for North America — usually it is only the other way around except for the local-language content.
I am worried though about Netflix (and any competitors) assembling catalogues for each separate country based on what people in that country like on average. I didn't sign up for Netflix to get Dutch soap opera's and reality shows, and I do not like being limited to a catalogue focussed specifically on what the average Dutchman wants. There is whole world out there; so what if I want to watch Austrian cooking television or Japanese game shows? Just fix the damn licensing mess already!
> usually it is only the other way around except for the local-language content.
I personally don't think this is true. There are significant amounts of content on Netflix that are only available in regions such as NLD and GBR that are not available in USA / CAN (Orphan Black comes to mind off the top of my head).
I would give up those few titles if that means getting access to the US (or even Canadian) Netflix library. It's also important to mention that those TV series are actually aired on TV in the United States, here in the Netherlands we have to hope that some TV picks up the rights in a few years (instead of airing endless Bones/CSI/House reruns) if it's not on Netflix.
USA: 4100 films, 1154 series
Netherlands: 1475 films, 382 series¹
It really doesn't compare. In the US Netflix works as a back catalogue for older films as well. Sure, not everything is there, but compared to what we get…
The explanation is that distribution rights are sold by territory because most old school distribution channels are by territory. And content is usally financed by the sale of rights (usually before anyone has seen anything).
But streaming is becoming more and more important and those deals will be reviewed.
To give you an example, when Netflix opened in my country, House of Cards wasn't in the catalogue. That's a show produced by Netflix. But that was because Canal + Afrique held the rights. A few months ago, it was added. Most likely because the contract expired or because they renegociated.