Netflix doesn't waste valuable employee time with the dumb task of listing, verifying and chasing VPN blocks. It outsources this to a commercial off-the-shelf product, which isn't even that expensive.
As you can read from the product description, many other answers in this post are inaccurate as tor exit nodes and data center blocks (where you would typically host your own VPS) are included in their listings as well.
It could be that they use another offering and not this specific one, but I know that this one is quite popular in the digital rights world.
MaxMind is pretty accurate and also very quick to add newly detected blocks to their list. It is a question of time before many VPN providers will just give up because it will become too expensive to keep buying US-registered MaxMind-unlisted IPv4 blocks. IPv6 should allow that cat-and-mouse game to continue for a while longer but I'm sure that more refined technology is being developed to detect VPN's beyond just the IP address (it can be done).
However, there will ALWAYS be ways to circumvent these listings for the truly determined and tech savvy. But it won't be the "easy 1-click setup" kind of circumvention anymore. And I guess Netflix can live with that. They probably also realize they can't weed out all non-US users, 90-95% should be considered sufficient. The smartest truly determined and tech savvy will not brag about it on Reddit and will never share how they circumvent the system anyway.
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