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Netflix Tipped To Launch In Oz, Major Threat To Foxtel

By David Richards | Monday | 25/11/2013

US online content company Netflix has held discussions with Australian TV manufacturers with the company tipped to be close to launching their service in Australia.

The company which is potentially Foxtel's worse nightmare due to its strong content relationships and cheap pricing already has tens of thousands of Australians buying its service using geo blocking software.

The three companies that could deliver the Netflix service are Samsung, Panasonic and LG. Currently European and US users pay between $8.50 and $15.00 for the Netflix service Vs over $100 for a Foxtel premium service. 

In the past Telstra has held discussions with Netflix whose service is delivered over the Internet resulting in users having to invest in fast broadband services.

Recent reports indicate that the company has already started securing the International rights to content for delivery in Australia. 

Neflix has in the past produced exclusive content including House of Cards and Arrested Development for its network.

A TV company source told SmartHouse last week that they had recently been in discussions with Netflix with a view to including a Netflix app onto their TV's in Australia.  "Netflix is coming to Australia" the source said.

A number of sources told the Australian newspaper that Netflix was "active" in the market and a launch was "imminent". A Netflix spokesman told Media: "At this point we have not announced any further details about our international expansion."

Earlier this year, lobby group Choice advised Australians how to get around geo blocks that allows them to access the low cost Netflix service.

Last week Foxtel chief executive Richard Freudenstein tried to send a message to Netflix claiming "There are a lot bigger markets they can conquer first before they come here."

Netflix recently commissioned its first Netflix-only series from Australia, with the purchase of a a spin-off from the hit kids' series H2O: Just Add Water.

The Australian newspaper recently claimed that the company has a swag of newly commissioned programming that will fit new territory launches next year, including a minimum of four 13-episode series from Marvel and the Walt Disney Company, the studios behind The Avengers and the Iron Man series. The Netflix series will feature the characters Daredevil, Jessica Jones, Iron Fist and Luke Cage.

Netflix and YouTube streams accounted for 50 per cent of US internet traffic.

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