ByMark J. Guillen, writer at
Netflix, Inc. (NFLX) might make it difficult for itself as well as others to do business in Australia.

Netflix Inc. is the online streaming giant that provides the best online video content services to more than 60 million paid subscribers. The company is offering and expanding its services to people living in more than 50 countries along with further additions every now and then.

The online streaming giant recently expanded in Australia where its entry in the market was said to be the most awaited and most publicized. Many said that it would be difficult for the company to settle in the Australian market due to fierce competition but so far, it has done well.

Netflix is one of the most popular services in the country as well as in the world. Therefore, according to sources, the popularity of the streaming service could be causing troubles for it and its customers in the region. According to the CEO of iiNet, David Buckingham, believes that the reputation of the streaming giant might force the broadband customers to pay substantial fees in that region.

Mr. Buckingham further explained that due to such immense popularity, existing broadband plans are feeling insecure and they might be unable to function under NBN (National Broadband Network). These local or foreign brands might be unable to function as well unless ‘the company significantly reduces its prices’.

The company has gained immense popularity since its launch in March and the internet service provider in the region, which include Singtel Optus Pty Limited and iiNet Limited, are not currently charging its customers for streaming on Netflix.

According to sources, “Netflix's service uses a hefty amount of data as it provides continuous high-definition (HD) video streaming to numerous devices at the same time. Some industry experts believe this would make it too expensive under NBN’s existing pricing plans.”

There is no doubt in the fact that the entire industry is seeking opportunities to get a deal with Netflix eventually. David Buckingham adds, “We got 6-to-12 months' worth of [data] growth in six weeks. Nobody can forecast that. This is an unprecedented shift in the market that no one anticipated.”

When Netflix launched, there was a sudden jump in the consumption rate of the users, which caused issues in downloading for iiNet for several weeks. As internet and other online services in the country are already expensive, the local established businesses took a lot of time to settle in. However, it comparatively kept lower prices in order to penetrate in the region.


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