I have used VPNs and proxies before to get a geo IP address in the country to access geo ip restricted content. TV, some sites to download firmware updates for my PS3 that was bought in a different country.
I understand how those technolgoies work and give you the IP address of the server in that country.

However, there seems to be something new called smartdns.
You change the dns settings and can bypass restricted content but your IP address remains the same (ie in whatever country or location you are).

How does this work and how can it unblovk geo ip restricted content?