Over the last few years, theres been a lot of hype around whether or not American giant Netflix will enter the Australian market to no avail. However, within the last month industry insiders have confirmed that the company’s plans to include Australia as one of its next destinations is on their radar.
Netflix are currently planning a staggered launch in different European markets over the next 12 months and could also be extending this launch into the Australian market to increase its 40.4 million worldwide subscribers. Local companies say that demand for online entertainment streaming is increasing in Australia. There is already approximately over 200,000 Australian households already use Netflix’s U.S. service through virtual private networks (VPN) or proxy IP addresses. Australia is one of the leading global markets for online film and TV piracy. In order to solve this problem, TV providers have been forced to offer screenings of high rating television shows in line with US broadcasts.
Before Netlfix enters the Australian market, they’ll need to overcome some domestic issues just like any other subscription TV provider in Australia, particularly when it comes to intellectual property as Foxtel currently has the rights to Netflix- backed “Orange Is The New Black” and “House of Cards.” These could be lengthy discussions which could have an impact on launch dates into what many Australian’s believe is a very consolidated industry.
On another note, it also looks like Foxtel’s movie streaming product, Presto, is looking to reduce its price to $9.99 per month which could be a result of them seeing more non-Australian competitors (like Netflix) starting to plan entering the Australian market. Stay tuned.
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