Netflix, which entered Australia only months ago, has already claimed its first victim in the region. EzyFlix, the digital movie and TV show store, is the first to go out of business as a result of Netflix’s launch in the nation.
Is Netflix responsible for EzyFlix’s shut down?
On Tuesday, EzyFlix posted a message posted on its website informing subscribers that its parent company, Access Digital Entertainment, has decided to close the website. The company did not give any specific reason for the closure, but Netflix is seen as an obvious reason. EzyFlix mentioned on its website that it will no longer be offering the movies rented or bought on the site.
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“If you have purchased or redeemed an UltraViolet title through EzyFlix these may be accessed through several other digital movie services,” it said.
EzyFlix’s model was different from that of Netflix, the EzyFlix founder, Craig White, told Gizmodo previously. EzyFlix does not charge a fixed monthly fee or lock users in contracts. Rather, it allows them to buy films and TV shows at a price of $2.99. Optionally, they could also rent newly released movies for $5.99 without requiring any monthly obligations or subscriptions. Netflix, on the other hand, is purely a subscription-based video-on-demand service that charges a monthly fee to its subscribers.
Netflix already dominating Australian market
Netflix’s launch in Australia has threatened the existence of several other local players, including ASX-listed Quickflix. Apart from Netflix, several new entrants — Foxtel’s Presto service and Fairfax Media and Nine Entertainment-owned Stan — are also competing to grab as many subscribers as possible.
Netflix, which reached 737,000 households in July, has become the most popular digital streaming service platform in Australia as the total household subscriptions of other service providers is only 177,000, estimates Roy Morgan Research.In July, the digital consultancy Telsyte reported that by the end of June, there were over two million active SVoD customers in Australia, and 90% of all the paid subscriptions were represented by four market leaders: Netflix, Stan, Presto and Quickflix.
However, the research firm also claims that Australia is not a “winner-takes-all” marketplace, and there are good chances that users choose multiple SVoD subscriptions based on the content offered.