The use of VPNs benefits streaming services. It’s cheaper for them if they don’t actually have to license their content in your country. They could easily tell that you’re using a VPN, but they choose to turn a blind eye.
In return, their catalog effectively gets much wider without them spending any more money and therefore they attract more subscribers.
Compare this to a streaming service with different incentives: BBC iPlayer. Their goal is to provide their content to anybody in the UK (who has a TV license) and nothing else. They block VPNs because they gain nothing from a user in another country watching their content, in fact the BBC loses out because it makes it harder to sell on to Netflix or whatever.
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