Netflix in Australia

The video streaming industry in Australia has seemed to expand in recent years.  The demand for these services has risen, and as a result different organizations are taking the advantage.  Television viewers now want to view different videos as and when they feel like. Having to wait for the scheduled periods set by various television networks does not intrigue them anymore. Several organizations have commenced their operations in this industry in order to provide consumers with what they are demanding as they make profit on their part. This year has seen the biggest shake-up in the industry’s landscape. In January, Presto TV and Stan launched their video streaming services. This adds to list of other organizations offering this service including Quickflix and Foxtel Play (Barrett, 2015). This means that the industry has several options for its consumers. The level of competition tends to entice the organizations involved in the industry to device strategies that will aid in development of a competitive advantage.

Another aspect of this industry is that it involves several copyright agreements. Before the organizations avail various videos for streaming, they must have the rights to broadcast the videos from the individuals involved in their production. Acquisition of these copyrights comes with a price whereby they have to pay an agreed upon fee. This aspect intensifies the level of competition in the industry. Every video streaming organization wants to have access to the best videos, and those that are on demand during that period in order to quench the demand of their consumers. This results to bidding wars whereby every organization wants to outdo their competitors (Healey, 2015). For this reason, the organizations involved should be willing and have the necessary resources to actualize the expected prices.

The prevalence of a variety of networks to choose from makes it difficult for consumers to identify exactly what is right for them. This aspect has prompted the networks involved in the industry to develop strategies that will help in capturing a substantial market share.  The main competitors that Netflix will face in the Australian market are Quickfix, Stan, Presto and Foxtel Play. These organizations differ in various ways based on their operations in the country.  Among the differences include pricing, airplay availability, number of registered devices that consumers can use for streaming and the number of devices to use at a single time. When it comes to pricing there are some differences among these networks too. Quickfix’s cheapest package goes for $9.99 per month, and the same price applies for Presto. Foxtel’s cheapest package goes for $25 per month while that of Stan ranges around $45 (Healey, 2015).

Based on the strategy that Netflix intends to implement with regards to pricing, they might attain a favorable competitive position. Netflix intends to introduce a three-tire pricing package. For the standard definition consumers will have to pay $8.99, and $11.99 for high definition. 4K quality on the other hand will go for $14.99 on a monthly basis (Healey, 2015). This pricing strategy shows that the organization wants to extend their service to both the low and high-end consumers. It can result to attracting many consumers since they will choose the package that suits them best. These prices are generally low compared to what Netflix charges for its US services.

Netflix also boasts of a favorable competitive position on the basis of its brand awareness. Many consumers involved with the video streaming industry already know the company and what they do even before it is launched in the country. This means it will not take long to convince consumers to use its services. This will ensure that a lot of funds are not spent on the marketing aspect, and they are saved to be used in other developmental areas that will help in mounting stiff competition. Netflix is also not a start-up business since it has been in operation for long. During this period, the organization has gathered substantial knowledge that will help in navigating the competition posed in the Australian market.  The legal and the economic environment might be different from other markets that the company has ventured in, but this will not be a problem since there are similarities in other areas (Barrett, 2015).

There are several recommendations that Netflix should put into consideration for future success in the Australia video streaming industry. Among them is taking time to learn the market and its requirements before making any major decisions. The strategies implemented in this market should not be entirely based on what has been working for the organization in the other markets of operation. The political, social, technological, legal, and economic environments should be put into consideration. This will help the organization steer clear from future failures, lawsuits, and losses among others. Trying to replicate strategies being employed in another market without considering the current environment would be very detrimental (Rayburn, 2014).

Giving consumers what they want at all times is also a vital element for Netflix to realize its profitability prospects in this industry. It is not upon the organization to decide what consumers should have, but it is for the consumers to influence the company. Failure to adhere to the demands of the consumers will result to losing them, and the competitors will give them what they want. A platform should be developed whereby the consumers can rate various genres of videos based on how they perceive them. The organization should invest more on those genres that have high ratings since it means they have the highest following. Netflix should also develop an algorithm that captures automatically the type of videos that are most viewed. This is because many consumers do not bother to give ratings for the videos they watch (Rayburn, 2014). This way the company can establish what the consumers want and avail it to them.

Another issue is ensuring that consumers can stream the videos from as many devices as possible. This ensures a level of convenience on the side of the consumer. There are those devices that different consumers prefer for various activities. A consumer will be prompted to switch to the network that supports their devices of their choice.



Healey, N., 2015, Australian Streaming Video Services Compared.

Barrett, D., 2015, Netflix Australia launch: Will viewers be lured to its streaming service? The guardian.

Rayburn, D., 2014, Streaming and Digital Media: Understanding the Business and Technology. Florida: CRC Press.


Do you need an Original High Quality Academic Custom Essay?