It doesn't mean they should block VPNs since it's effectively a discriminatory (bordering on xenophobic) practice, same as rejecting foreigners in a physical store.
I think more likely by local distributors, who have too much leverage on said content providers. Local distribution is often at odds with global Internet one.
The content providers don't have a product to sell to local distributors if they don't have significant control over online distribution, so it's not like they'd be complaining if that were the case.
> The content providers don't have a product to sell to local distributors if they don't have significant control over online distribution
Why so? It only happens in unhealthy monopolized markets. In healthy competitive markets, content providers should be independent from distributors. They create something (films for instance) and distribute them as widely as possible (i.e. through all distributors), to maximize reach and in turn profit. That would include global unrestricted distribution. But when market is monopolized and there are cartels, all that becomes totally messed up and restrictions pop up all over the place.
This isn't a thing that's unique to digital content - it's a common business arrangement for some company to be allowed to be a sole distributor for a product in a market. It reduces risk for the distributor, meaning that they're able to give the product manufacturer a bigger cut.