Netflix, Inc. (NASDAQ:NFLX) is reportedly launching a low-cost, “all you can eat” streaming service in Australia and New Zealand, possibly by the first quarter of 2015, according to executives at U.S. studios. Though the company claims that it has not decided on the date to expand in Australia, it is already in talks for the Australian rights to U.S. films and series.
“They are engaging with the studios,” says one U.S. executive, who is convinced of a Q1 launch, says a report from If.com.
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Tough competition to local players
Users might have to pay $10 or less for a monthly subscription, which is equal to the charges from Nine Entertainment for its local subscription VoD service known as StreamCo.
Rival Foxtel will be under pressure in the wake of low pricing as its SVoD movie service Presto launched in April costs $19.95 a month. Presto might gain some traction with Google launching Chromecast, a device that allows online channels and videos to be viewed on big screen TVs.
According to an executive at Foxtel, the company is already looking forward to reviewing the price and package of its services after acknowledging that the cost is very high and subscription levels are 30% of the TV homes. Apart from Foxtel, Netflix, Inc. (NASDAQ:NFLX) could prove to be a tough competitor for Quickflix, which introduced a $9.99 streaming only offer in April.
Netflix trading higher
Recently, the online streaming giant announced plans to expand into France, Germany, Austria, Switzerland, Belgium and Luxembourg towards the end of this year. Expansion in Australia will be over the short- to medium-term. Also, various executives confirmed to IF.com the company would launch the expansion in Australia in Q1 2015. Last week, a Netflix, Inc. (NASDAQ:NFLX) spokesperson told IF that the company “hopes to be everywhere someday.”
Netflix has 49.8 million subscribers globally, with 72% of them in the U.S. It posted a $201 million profit for the quarter ending in March.
Netflix, Inc. (NASDAQ:NFLX) shares were trading higher in pre-market Tuesday following an update on the company by Janney Capital’s Tony Wible. The analyst said that Sony animation content does not appear to be on Starz streaming platform and that Netflix likely had the content now. Janney Capital has a Buy rating on Netflix with a price target of $450.