Netflix debuted in Australia only last week, and we already get to see how it is faring. The internet service provider iiNet states that already 15% of its internet traffic is contributed by the U.S.-based online video streaming service, according to a report from SMH.
Netflix could have more subscribers
iiNet is the third-biggest fixed line internet service provider in Australia. The internet firm, with about 1 million customers, entered into a partnership with Netflix and is promoting quota-free downloads.
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“Netflix has already reached 15% of iiNet’s consumer traffic in the first two days since launch. We are terrifically excited by the response,” and iiNet spokesman said.
The data suggested by iiNet may not be accurate, and the number of Australian broadband users could be much higher. iiNet figures took into account only the users accessing Netflix Australia but do not include users subscribing to the U.S. service using a virtual private network. It is expected that around 200,000 Australians use VPNs to access Netflix USA. Therefore, many believe that if subscribers using VPNs are included in the iiNet figures, then the share of Netflix could stretch to 25% of Australia’s broadband traffic, says the report.
Rising numbers of SVOD providers
Netflix’s huge popularity in Australia has led to the mushrooming of several subscription video-on-demand (SVOD) services by media companies in a hope to reduce the impact of the U.S. firm in the video streaming industry.
Such rapid growth in SVOD providers in Australia raises concerns about if there is enough scope in the market to accommodate all the players, says the report. Such a concern has been put to question by the chief executive of Fetch TV, Scott Lorson. “The reality of the [SVOD] business models suggests there will be few spots on the winners podium,” he said.
Optus, the second-biggest telecommunications company in Australia, and Netflix have entered into an un-metering deal, but the former has not come out with any details on the traffic gained by the U.S. firm. It cannot be said for now if the service is faring well in Australia as the number of users remains undisclosed for now. Netflix is offering the service, which is priced at $8.99 a month, for free for the first month.