I wrote last week how the Coalition’s tough stance on copyright, along with anti-competitive dealings by Australian networks, would likely encourage greater internet piracy by Australians denied of opportunity to purchase content legally.
Now, Australian networks have cried foul over Australians streaming television from US company Netflix, which is said to have secured between 50,000 and 200,000 Australian customers. From The Australian:
One commercial network said it had raised concerns with US studio executives about losing viewers to Netflix.
There is concern at local networks about the growing impact of the US company flouting international regulations by accepting payments from Australian credit cards, despite maintaining a geo-block that is easily bypassed by VPN manipulation or spoof IP addresses.
The streaming company, which has more than 40 million subscribers globally, has denied any plans to enter the Australian market in the short term.
However, Australian broadcasters have noted Netflix, which allows US consumers access to stream unlimited TV and movies for $US7.99 ($9) a month, does not need to go to the expense of establishing an Australian outpost given its growing base accessing the service illegally.
The major issue now for Australian broadcasters is that any local subscribers Netflix allows dilute the value of their output deals with international partners, such as Nine’s with Warner Bros or Foxtel Movies’ with various Hollywood studios.
Instead of complaining about foreign competition and their loss of monopoly rents, Australia’s networks should discourage piracy by freeing-up the market for content, so that purchasing it legally is as convenient as illegally downloading from the internet. This requires an end to exclusive deals and providing consumers with the ability to purchase content in a variety of formats from a variety of locations.
As long as Australia’s networks treat Australian consumers like mugs, they will continue to seek alternatives, including internet piracy and offshore streaming services.
The choice is to actively compete for customers, or lose market share. It’s that simple.
