Is Netflix About To Put Aussie Rivals To The Sword?

Is Netflix About To Put Aussie Rivals To The Sword?
SHARE
THIS



It’s only been active in the Australian market for two weeks but new research claims Netflix is set to triumph in the local video streaming war.

Research by Australian video internet firm Authentic Entertainment has found one-in-five Aussies either have or intend to subscribe to the US-based video streamer.

The research also found there is a sizeable appetite in Australia for video-on-demand services and they should gain market share sooner rather than later.

That’s despite initial complaints from Aussie customers of slow bandwidths and the numbers of people signing-up being puffed-up by a number of free trials on offer. Optus is currently offering its customers a six-month free subscription to Netflix.

A report by video quality analytics firm Conviva – whose clients include Disney, Sky and Bloomberg – has found a quarter of people will switch off their video streaming service after four minutes of viewing if the internet connection speed is slow or keeps buffering.

However, the research is contrary to other experts who’ve said the major players – Netflix, Stan, Presto and Quixflix – could struggle in the small and crowded local market.

Last month B&T quoted Channel 4 UK’s director of audience technologies and insight, Gill Whitehead, as saying Netflix would probably snare a similar audience share in Australia as it does in the UK – about three per cent.

“These (video streaming sites) are having an impact but it’s much less than it is in the States where 30 per cent of the streaming traffic is coming from Netflix. In the UK it’s more like three per cent and they’ve been in the UK market now for three years,” Whitehead said on a recent Australian visit.

While CEO of McCann Worldgroup, Ben Lilley, believed that the video streamers’ offerings were very limited and consumers would be forced to subscribe to multiple channels for it to be worthwhile.

However, the Authentic research predicated a far rosier future for the video streamers. It found that Aussies already are accustomed to watching TV online – be it YouTube clips, catch-up TV series or long-form video – and by 2017 85 per cent of Australians would be in a position to access video streaming services particularly as more smart TVs are connected to the internet.

Authentic found Gen Ys are increasingly less loyal to the commercial networks as previous generations. while even those aged over 55 – 54 per cent – now watch video online.

But arguably the biggest thing to come from the Authentic research found that 50 per cent of Australians would happily watch ads on (the presently) ad-free streaming services if it meant the services were cheaper or free altogether.

Quoted in the News Limited press today, Authentic Entertainment’s head of research, Beth van Koesveld, said this “probably means a new focus for advertisers”.

“Consumers seek out premium content (and) advertisers should too.”

Latest News

McCann Names New MD For Melbourne
  • Advertising

McCann Names New MD For Melbourne

Creative agency McCann has announced the appointment of Georgie Pownall as its new managing director for Melbourne. With over 20 years’ experience in marketing and advertising, Pownall (pictured above) joins McCann most recently from Publicis Mojo. She has also worked for several other agencies such as The Campaign Palace, DDB, Saatchi & Saatchi, and CHE. […]

ABC Accuses Murdoch Of Helping Oust Turnbull
  • Media

ABC Accuses Murdoch Of Helping Oust Turnbull

The ABC aired an explosive report during its 7 pm News last night, claiming News Corp’s Rupert Murdoch waged a media-driven war against ex-prime minister Malcolm Turnbull to oust him from parliament. According to ABC, Seven West Media CEO Kerry Stokes was told Murdoch Turnbull “had to go”, in the lead up to the Lib […]

Data Storytelling Platform Nugit Appoints Darren Jacobs To Lead Sales
  • Media

Data Storytelling Platform Nugit Appoints Darren Jacobs To Lead Sales

Following its Australian launch, data storytelling platform Nugit has appointed Darren Jacobs as VP sales and client development to drive new business across the region. Jacobs has extensive experience working in Australia, joining Yahoo! from its London office in 2008 before moving to Publicis owned agency Zenith Optimedia as performance account director and then digital […]

Dendy Icon Promotes Sharon Strickland To CEO
  • Media

Dendy Icon Promotes Sharon Strickland To CEO

Cinema and film distribution group Dendy Icon has announced the promotion of Sharon Strickland to CEO. Strickland joined the company in 2010 from Hoyts as financial controller before being promoted to chief operating officer in 2014. She replaces Greg Hughes as CEO, who left Dendy Icon in November after 11 years at the group. Dendy […]

Natalie Bassingthwaighte To Host Ten Reno Show ‘Changing Rooms’
  • Media

Natalie Bassingthwaighte To Host Ten Reno Show ‘Changing Rooms’

Network Ten has announced that Aussie actress and singer Natalie Bassingthwaighte play the role of host on the revamped renovation show Changing Rooms. A woman of many talents, Bassingthwaighte has had a long association with Ten with previous appearances on Neighbours, The Wrong Girl and So You Think You Can Dance Australia. More recently Bassingthwaighte […]

WhichCar TV To Launch In 2019 On Channel Ten
  • Media

WhichCar TV To Launch In 2019 On Channel Ten

Bauer Media and Network Ten are proud to announce an exciting new television show for 2019 showcasing everything new car buyers need and car lovers want.

QLD Department Of Health Aims To ‘Stop The Rise Of STIs’
  • Campaigns

QLD Department Of Health Aims To ‘Stop The Rise Of STIs’

In order to address high STI rates and lack of knowledge amongst young adults, Khemistry – a GrowthOps business – has created a multi-channel campaign for the Queensland Department of Health. The campaign encourages sexually active young Queenslanders to get tested, use protection, every year or with every new partner. STI rates in Queensland are […]