State-owned Telkom Indonesia, which is the largest telecom company of the country, blocked the streaming firm’s services as it lacked a content provider permit and some of its content is violent and objectionable, says a report from The Wall Street Journal. Netflix has since then been working with individual countries to offer its streaming content in line with local regulations and cultural considerations. At the Sundance Film Festival, Netflix was reportedly the highest bidder for Birth of a Nation, offering $20 million for worldwide rights to the film, but lost out to Fox Searchlight, which bid $16 million, according to entertainment business site The Wrap and other new reports.
Advertisement
Telkom Indonesia has not responded to ABC News’ request for comment.
Netflix has indicated that it is willing to adhere to Indonesia’s laws and regulations, but it believes that it doesn’t have to follow the same procedures as cable networks. Uber argued that it does not own any vehicles, but eventually said it will set up a subsidiary to better comply with local regulations.
Concerns that films provided by Netflix could evade scrutiny by Indonesia’s Film Censorship Board also appear to have been a driving force behind the ban.
As part of the proposed partnership agreement, Telkom will be allowed to filter content, including content that includes violence or explicit material. For now, customers of Telkom fixed-line broadband Indihome, Wifi.id and its mobile subsidiary Telkomsel are not able to access Netflix. The ministry now monitors websites and blocks content on a case-by-case basis. It also claimed it would be cracking down on virtual private network (VPN) use to prevent users from accessing foreign Netflix content.
A Netflix statement said “services delivered over the Internet present all sorts of novel questions for policymakers” but did not confirm it was blocked. Telkom and its rivals are investing heavily in Internet infrastructure, because traditional businesses, such as calls and text messages, are being replaced by online platforms.
Advertisement
Indonesia is not the only country where Netflix may experience some pushback.
