Little by little, Foxtel’s stranglehold on subscription television services is being loosened, with Netflix announcing its entry into Australia next year. From The Australian:
Netflix announced internet-connected users will be able to access its library in high definition and 4K where available, although it has not announced pricing. Expectations are it will cost around $10 a month…
It is understood Nine Entertainment and Fairfax Media’s joint venture SVOD service Stan is rushing towards a December launch. Its parent, StreamCo, has already confirmed SVOD deals with the Sony and MGM studios, and a deal with Warner Bros is also expected.
As someone who believes that Australians are being gouged by digital content providers, this is a fantastic outcome. US consumers pay less than $10 a month for Netflix’s streaming services, which offers a wide array of cable programs and movies that are viewable on demand. By comparison, until recently, Australians were required to pay $50 or more for a sub-standard Foxtel service, with the company since lowering its basic package to $25 in lieu of the competitive threat – still far too expensive, but an improvement for consumers nonetheless.
Foxtel has also recently entered 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 has driven consumers to seek alternative sources, such as unauthorised downloading via Bit-torrent.
Hopefully, with Netflix’s launch, along with the emergence of other video-on-demand services, Australians will finally gain similar access to digital content that is afforded to citizens in most foreign countries. This would also go a long way to reducing online piracy, since their would be less incentive to “steal” content when it is both affordable and easily accessible.
Some 200,000 Australians are already estimated to have gained access to Netflix’s US service by changing their IP address to the US (via a virtual private network) and paying the USD subscription fee. While not permitted under Netflix’s terms and conditions, the company has so far turned a blind eye to Australians purchasing a monthly subscription, so it will be interesting to see how they are treated once the local version launches next year.
While Rupert Murdoch will hate the launch of Netflix, since it will deprive Foxtel of the means to charge consumers exorbitant prices, it should be music to the ears of Australian consumers, who are sick and tired of being treated as sheep to be fleeced.
