In a blow for Australian consumers, and a win for Foxtel, the launch of online television streaming services by Netflix has been postponed to at least the second half of 2015, with the company instead focusing its attention on expanding into Europe. From The AFR:
Netflix is understood to have held preliminary talks with Australian content owners over the past three years but has signed no contracts, a prerequisite to launching a service in the region…
Last month, Netflix announced a push into six new European markets as it searches for ways to grow its subscriber base of 48 million. The move would bring the service to 47 countries…
As someone who believes that Australians are being gouged by digital content providers, this is a disappointing outcome. US consumers pay only $8 per month for Netflix’s streaming services, which offers a wide array of cable programs and movies that are viewable on demand. By comparison, Australians are currently required to pay $50 or more for a sub-standard Foxtel service, with the company also entering into exclusive deals to show programs like Game of Thrones and True Detectives, thereby stifling competition for digital services and depriving Australians of choice.
Indeed, it is the extreme geo-blocking and protection that surrounds much international content distributed through Australian cable television that is driving consumers to seek alternative sources, such as unauthorised downloading via Bit-torrent.
All is not lost, however, with Netflix still available to Australian consumers via a virtual private network (VPN). Netflix estimates that some 200,000 Australians are already using the service by changing their IP address to the US (via a VPN) and paying the USD subscription fee. While not permitted under Netflix’s terms and conditions, the company has so far thankfully turned a blind eye to Australians purchasing a monthly subscription.
Ultimately, there is no good reason why Australians shouldn’t have the same access to digital content that is afforded to citizens in most foreign countries. Freeing-up the market for digital content – so that purchasing it legally is as convenient as unauthorised downloading from the internet – is also the key means of reducing online piracy, which is supposedly rife in Australia. This requires an end to exclusive deals and the ability to purchase content in a variety of formats from a variety of locations, as well as making it legal to convert files as one sees fit for private use.
While Rupert Murdoch would hate such an arrangement, since it would deprive Foxtel of the means to charge consumers exorbitant prices, it would be a clear win for Australian consumers, who are sick and tired of being treated as sheep to be fleeced.
