Netflix Announces Aussie Subs Rates. Foxtel To Shed 250K Customers?
Video streaming giant Netflix – who launch into the Australian market tomorrow – have unveiled its subscription rates for local users.
There will be three tiers of subscriptions with the cheapest being $8.99 per month. That’s cheaper than both its rivals Stan and Presto, although that rate means programs will be streamed in standard definition only and is for only one screen in the house.
Stan’s cheapest package is $10 a month, but offers higher definition streaming. Presto’s cheapest is $9.99 per month and is only standard definition.
The news of Netflix’s rates comes after the US-based company announced last week it would not charge its Australian customers GST.
Netflix will also offer a $11.99 plan which will allow high-definition screaming for two screens and a $14.99 per month package that allows the faster streaming for up to four screens.
All the three major suppliers in the Australian market presently offer a 30-day free trial.
The pricing war between the three major players is good news for Australian audiences; however, there’s a general view that Netflix – with its large marketing budgets – would win any pricing war with its competitors.
And all this adds up to bad news for Australia’s subscription TV service Foxtel (who part owns Presto). Australians, it could be said, haven’t proven to be great up-takers of paid television content. And a new report by Venture Consulting has revealed that 250,000 Foxtel subscribers plan to take-up a streaming package and, in doing so, cut or reduce their Foxtel subscriptions.
And if that number were true, and even if it was compensated by viewers taking up a Foxtel Presto streaming service, its estimated that would still be a monthly hit to the bottom line by as much as $3,750,000 per month.
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