Netflix Australia has released its content catalogue and pricing a day out from its March 24 launch, after the details were leaked on reddit on Sunday. On Monday morning, the leaked pricing details were confirmed via a Netflix press release emailed to Mashable.
The company has been smart in its move to the land Down Under by looking the other way with regards to Australians using VPN workarounds to access the U.S. version, therefore creating mass hype for a product before a local edition was even close to launch. Now, in another smart marketing ploy, Netflix Australia has undercut all its local competition in price for its standard subscription.
The cheapest monthly fee in the tiered-subscription model is the standard definition, single stream plan for a measly A$8.99, while the HD, double-stream plan is A$11.99 and a 4K ultra-high def package, which allows for four streams, goes for A$14.99. Competitor product Stan serves all definition models for A$10, with Presto available in standard definition for A$9.99 and Quickflix also sitting at A$9.99.
The leaked pricing.
It is likely, given the recent price drops from local players, that there will be further price point shifting in the near future. To push strongly into the Australian market, Netflix will also offer consumers a month’s free subscription trial (a deal also available on Stan and Presto).
The company is launching locally with a stable of programs such as Netflix originals Orange is the New Black and House of Cards, which will be the main draw cards for Australian consumers. There will be no penalty for living on the other side of the world, with Netflix confirming that both shows will be available at the same time in Australia as in the U.S.
The company has previously been coy regarding the local release of Orange is the New Black, with the rights in Australia thought to be tied up with pay television company Foxtel.
Netflix has content deals with a range of production companies to bulk up its local catalogue such as BBC, FOX, NBC Universal, Village Roadshow Entertainment, Australian Broadcast Corporation, Walt Disney and Warner Bros.
Pricing in the U.S. is very similar to the Aussie offering — with standard definition streaming offered for U.S. $7.99, HD two-stream for U.S. $8.99 and the family model for U.S. $11.99.
Data limits won’t be a problem for Aussie consumers of Internet service providers Optus or iiNet, with both companies previously confirming that they would allow un-metered Netflix watching.
Nielsen released its 2014 Total Audience Report on Wednesday, and it highlighted something many already assumed: Americans are growing increasingly enamored with streaming services like Netflix and Hulu.
More than 40% of U.S. homes now subscribe to a streaming service, according to the report. The biggest chunk of that, of course, is Netflix, which is in 36% of homes across the United States. Netflix is trailed by Amazon Instant Video, which 13% of U.S. households subscribe to. (Amazon Instant Video comes free with Amazon Prime, so it is unclear if all subscribers are using the platform for video streaming. Still, bottom line: Netflix is the dominant force here.)
According to Nielsen, Americans are spending more time consuming media but less time watching live TV. However, we still watch a lot of live TV. The average adult spends 4 hours and 51 minutes watching live TV each day, which is down 13 minutes from last year, the report stated.
Households that use streaming services also have access to the greatest amount of technology; people in these homes consume 2 hours and 45 minutes of TV each day using connected devices, such as video game consoles or smartphones. Households that don’t subscribe to streaming services spend just 1 hour and 57 minutes in front of these screens, according to the report.
The study defines a household as “a home with at least one operable TV/monitor with the ability to deliver video via traditional means of antennae, cable STB or Satellite receiver and/or with a broadband connection.”
Broadcast, satellite and cable networks are slowly fading in a shift known as cord-cutting. Cable networks, for one, saw big ratings declines in the latter half of 2014. Ratings among adults dropped 9% last year, which is a threefold increase from 2013’s decline.
Of course, live watching still accounts for the greatest chunk of TV consumption, so the demise of traditional TV is not imminent — but the trends are clear.