What Netflix’s arrival downunder could mean for Aussie TV
With Netflix tipped to launch in Australia in 2014, Professor David Marshall from Deakin University looks at what this might mean for the Australian TV market and consumers.
Australians rejoice: Netflix is rethinking its avoidance of Australia, according to media reports, and could launch here as soon as next year.
Initially concerned about poor internet infrastructure, Netflix could be considering delivering content outside its traditional offerings – including through internet-connected gaming consoles and set-top boxes.
Entering the Australian market – alongside France and Germany – would cap off a good year for Netflix, which has seen its shares rise 260% since the start of the year. Netflix now has more than 40 million subscribers, and has more US subscribers than popular cable channel HBO. But is Netflix the next bubble stock, or is there a good reason for this optimism?
This is one of those “I can’t believe it hasn’t already happened”. The demand is such that plenty of Aussies are already doing the whole fake U.S. IP thing. For a company like Netflix, Australia is a truckload full of money just sitting there on the side of the road. It’s a wonder no-one picked it up before now.
As if millions of program directors suddenly cried out in terror and were suddenly silenced.
RIP Commercial TV.
Hugo – Undoubtedly, the Netflix service would be well received. However, with Netflix contributing to something like 30% of all the US’s bandwidth use between 9pm and 12pm with only 10% of the US as subscribers, our infrastructure needs to be more solid to support a similar demand. This is also with the continued rise of digital infrastructures replacing traditional ones. Xbox and Playstation have integrated the internet heavily into their systems – digital downloading, online games and the constant connection to social, and applications equates to a massive load of bandwidth.
Also the introduction of 4K – it’s twice the size HD. That’s double the bandwidth.
Can our infrastructure handle it?
No doubt when they do come to Australia the pricing will be double what America pays and with half the content. The clever will still be getting a VPN and using the American Netflix.
But what does this mean for Australian TV? Foxtel will finally be getting a run for their money, and no doubt there will be many who realise they don’t need it any more. The free to air networks will also no doubt see a drop in American shows.
Agree with Brent W.
Have noticed already that after 5pm on a Friday Spotify goes from smooth playing to annoying buffering. And this is just audio.
I hope so Brent, I really do – but I agree our infrastructure is a worry going forward from here. If you’ll forgive me going slightly political – the national broadband network being done half-arsed is the biggest negative of the last federal election.
Bring it on – the more legal ways to access great content the better
Anyone heard of Fetch TV? QuickFlix? Apple TV? T-Box? Samsung & LG Smart TVs?
All these services offer movies and/or TV shows on demand (alongside optional subs packages).
Have they taken off and shaken up the establishment?
Will Netflix be any different?
If they want to succeed, we’ll need the NBN.
The entry of another competitor is just another reason that traditional media will continue their campaign *against* the NBN. Though it does look like Foxtel will be moving more and more into an on demand style service…
Can’t wait, bring it on. Good bye Foxtel.
it’s not like others aren’t already offering, or have tried to offer, similar offerings… BigPond, Quickflix, Apple etc etc. The challenge for these companies and Netflix is that Australians, at their core, are tightarses who would prefer to get something for free rather than pay for it. While they can still get it free via piracy, it’s a tough sell.
Has anyone here actually WATCHED Netflix? Im one of the many Australians who have Netflix – it’s easy to set up if you do a bit if Googling.
However I still watch 95% of my viewing on Foxtel. The only reason Netflix is $8 is because it’s full of crappy old movies and years-old TV shows. Yes they now have some good original shows – and t’s good every now and again for an obscure doco. But it is in no way a Foxtel competitor.
The article is titled “What Netflix’s arrival downunder could mean for Aussie TV”
Is does not really go into detail of what it COULD mean – it is mostly the history of Netflix that reads like a Wiki entry.
If you are going to publish an opinion piece at least have an opinion.
Murdoch doesn’t want NBN and made it so.Netflix will have to jump through hoops to offer a competitive price because Murdoch owns foxtel.you see where I’m going here?
I have Netflix as well. I agree with Netflix subscriber – the content is a little old – interspersed with high quality stuff. But that was my problem with Foxtel – mainly crap with the occasional highlight. You only pay $8 for the Netflix service and I was paying $100 for the same on Foxtel.
If Netflix or any of the other online video providers came to AU, I might go out and buy a TV or projector. Until then, I am happy with YouTube, Catch Up TV on the laptop or phone.
I am still amazed that I can’t subscribe to specific premium events or programs on Foxtel through live streams.
If YouTube could sort out live streaming (it’s glitchy for me) then they too could be a contender, however they don’t have the content from the local networks, and we all know why that is.
/y0z
Agree with Hugo and others that Australia is a sitting opportunity for Netflix, i can’t wait to get begone of Foxtel and its laughable “IQ” service. I think another problem Foxtel has is a low level of trust and loyalty to Foxtel among consumers (remember when ads came in?).
To those who ask why will Netflix succeed in getting mass-market adoption where others haven’t (like Quickflix and T-box and Apple TV). The answer is that no-one is yet offering a content streaming service which is simple, can be delivered to any device, and has enough decent content to be worthwhile (this is why I am paying over-the-odds for Foxtel IQ – its easy [tho still not good enough in 2013]). Remember what smartphones were like before the iPhone, the techies said they were great but no-one else bought them.
To those who question the quality of the content, it will get better…. Many disruptive innovations start off being pretty ordinary but get better as they make more money and can reinvest.
Great points re infrastructure. Good thing we didn’t have the Coalition when Australia first build roads as they would have only gone to the street corner. But it is also possible there will be other technical innovations that help, like better compression technologies.