Ever since Netflix Inc. expanded its global footprints to the Australian region, the local established internet and cable TV businesses have been significantly sidelined from the industry. It was noted that more than 340,000 viewers subscribed to the company’s platform days after the company made announcement regarding its launch. Since March, the streaming giant has received tremendous response from the Australian viewers and is now considered as the first TV choice. It is not only Australia but Netflix is single handedly dominating the TV industry in all the countries it is available in.
The cable TV providers in the United States decided to put their grudges aside and joined hands to compete against Netflix together. The streaming service provider might be facing some tough competition in its own homeland. Recent news suggests that the Australian companies will be following the same strategy as well to keep the streaming giant quiet for a while.
A week before Netflix’s introduction in Australia, the cable and internet TV providers were threatened to lose a major chunk of market share as well as customers once the product is released. As of now, the company is ruling over the market with its unlimited entertainment offerings. However company officials and senior executives of Network Ten, Nine West, and Seven West Media have been urging the Australian broadcaster to let go off their differences and get along together to battle the international digital media giants such as Netflix. Throughout the world, the company has a bigger budget and more than 70 million viewers that is enough to dominate any market.
The chief digital officer of Seven West Media, Clive Dickens, stated in an interview to Fairfax Media “We're all seeing a significant amount of disruption [from technology players] and we have to innovate, disrupt or die. The best way to avoid dying is by collaborating as well as innovating. When everyone was glued in front of the lounge screen [consumers] had no choice but now consumers have choice and we need to respond.”
He further adds that the local broadcasters will have to change their business strategies if they want to sustain their businesses in the market. Netflix does not compromise on quantity and quality and will not take things lightly even if there is no competitor in the market. Therefore, if these companies are to compete against the streaming giant, they will have to join forces first to sideline the biggest entertainment network in the world.