It pains me to have to point this out, but it seems as if the weekend anti-copyright knee-jerk brigade is out in force today. What Hastings was roughly saying appeared far from shocking or outrage-provoking.
Obviously, if they don't want to be in breach of contract Netflix are legally obligated to abide by the covenants of whatever agreement(s) they've entered into with content owners. He's merely saying this to appear to do what they expect his company to prevent, this in order to keep securing more licenses for their content; and further he adds that he's very aware of what customers want, only it's going to take time to reach a universal licensing model. Except for programs they fund themselves, one would assume.
I mean, who are we kidding here? Obviously, with them using around 37% of the entire Internet's bandwidth as of 2015 stats, one would think that Netflix is keenly aware that it's just a pointless exercise of whack-a-mole, but the balding pointy-headed head of the licensing department at 19thCenturyFax might not quite be as savvy with technology, and could actually believe that the VPNing can be stopped. (in reality, none of them are dumb enough to assume something so silly, but their point simply validates the low-hanging fruit theory to get maximal return for a small investment of time and resources.)
If people are serious about using VPNs, then they'll have to put in a bit of extra effort and spend a little more to get a reputable provider that will not fall victim to their pruning of the cheap or free VPN services. Again, nothing terribly earth-shattering here. One could therefore remark that it would seem reasonable to save the indignant tone for actually important things.