Netflix Inc. is the giant in providing online video content services to almost 50 counties in the world. Recently, it surpassed the 60 million subscribers’ mark making it the most viewed site in the history of entertainment. It is believed that the company is now bigger than CBS, as its long awaited launch in a few regions contributed to the fact that it is bigger than CBS now. On March 24, the online video streaming giant was set to launch in Australia and New Zealand.
Aussies were very excited on the announcement that Netflix would soon be available in their region. Hence, prior to the launch date, the streaming giant reported that more than 340,000 users already subscribed to its services in the region. This got the officials of the company boiling and resulted in a permanent ban to users who use VPNs from now to access it.
Analysts now say that Australia’s insane love for piracy has resulted in cheaper Netflix subscription in the region. The Chief Financial Officer of the company admitted himself that the country’s love for piracy has helped them to get Netflix cheaper and get a better deal in its pricing plans. He further said that due to higher prevalence of privacy in regions, such as Australia and others as well, the corporate giant plans to keep the subscription fee lower than usual. He stated, “Piracy is a governor in terms of our price in high piracy markets outside the US. We wouldn't want to come out with a high price because [if] there's a lot of piracy … we have to compete with that.”
Australian users have to pay a subscription fee of $A8.99 each month, in order to get the flawless offerings of the online video content services, which include House of Cards in Standard Definition (SD). The service will offer High Definition at higher rates and permission to access Netflix on more than one device. Australians have the lowest subscription fee rate for a month when compared to New Zealand, Canada, United Kingdom, France, and Germany, etc. All of these users are paying a little bit higher prices than Australian users.
Mr. Reed Hastings has ensured that the use of Netflix will soon eliminate and the company would be expanding rapidly in every corner of the world to ensure that all users have its access. Furthermore, the Chief Content Officer, Ted Sarandos, said, “The real great news is, in the piracy capitals of the world, Netflix is winning. We're pushing down piracy in those markets by getting the access.”