Netflix, Inc. has been the standout entertainment company in the past few years. Ever since its inception, the company has focused to ‘cut the cords’ of people who are fond of watching television. With time, the company has aimed to minimize the market of conventional pay TV cable option and provide a better online alternative, with a much diversified catalog of online movies and TV shows. Hence, it has expanded its business to most parts of the world.
Recently, the online streaming giant entered the Australian market, where its name imposed great threats on conventional TV business owners and established online video content providers. The credibility of the company prevails across the continent.
Last week, it was reported by the Australian analysts and reporters that Netflix is now the number one company surpassing all other established local competitors, such as Foxtel, Stan, Presto, etc. People were quite thrilled to see that it has achieved a lot in a new competitive market in a short span of time.
An app maker, ‘Pocketbook’, claimed that Netflix is the king in the online streaming market in Australia. However, the same app maker has now backed away from its claims when Foxtel decided to discredit those claims.
Pocketbook came forward and said that Foxtel still rules the online streaming industry in Australia and Netflix is yet to beat it in the region to become number one. Fairfax Media Group collected data from Pocketbook and reported that the streaming giant has managed to get a 39% market share in the paid subscription video market of Australia, overtaking Foxtel.
Pocketbook was previously known as the provider of the most accurate data and reflection of the current market. However, its co-founder, Bosco Tan, now says, “the data is most suitable to be used as a leading indicator for forthcoming trends.”
He further says, “We have adjusted our claims that Netflix is the leading subscription service today compared to Foxtel upon learning that [Foxtel's] business customers contribute to only 1 per cent of their 2.8 million customer base.” He also adds that it is unlikely that Netflix would get such high subscriptions and it is impossible for the online streaming giant to achieve a massive user base of over 2 million only in Australia since March 24.
“However, given the nature of our sample, we believe our research is an accurate lead indicator for the impending direction of Australian consumer behavior at large”, he says.