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No, I'm saying the AppleTV is connecting to some unknown host name, which is certainly not the same one you connect to with your web browser. Call it "appletv.netflix.com". It wouldn't be a specific IP address, because that would be to easy to fail.

The server at that address looks at the IP address of the incoming connection (your AppleTV), determines that it's using a Canadian ISP (and is presumably in Canada), and redirects your AppleTV to contact appletv.netflix.ca (for example). At that point, you're getting the content authorized for Canada.
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