Netflix drives drop in Australian piracy

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By Leith van Onselen

The entry of online streaming services like Netflix, Stan and Presto has driven a 25% drop in internet piracy, according to new research from consumer advocacy group CHOICE. From The Australian:

“This proves once again that making content affordable and easily available is the first and most effective tactic to reduce piracy – not a draconian internet filter and notice scheme,” CHOICE Campaigns Manager Erin Turner said in a statement…

Ms Turner says as a nation, Australia is keen to pay for legal content, with the survey finding the number of people using legal subscription and pay-per-view services has climbed from 46 per cent to 59 per cent since their initial survey in November 2014.

“The increase is directly related to the launch of Netflix in Australia and the emergence of a local streaming industry, with players such as Stan and Presto competing for customers and offering consumers real alternatives to piracy,” Ms Turner says.

“Unlawful downloading comes down to availability, timeliness and affordability.”

It’s hardly rocket science, is it? The key to reducing piracy is to free-up the market for content, so that purchasing it legally is as convenient as unlawfully downloading from the internet.

It is precisely the extreme geo-blocking and protection that surrounds much international content distributed through Australian cable television that has driving consumers to seek alternative sources, albeit illegally.

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But provide Australians with the same affordable access to television and movies as citizens in other countries, and they will no longer need to “pirate” shows using file sharing services like bit torrent.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.