Geeks2U Promise
We guarantee you'll love our fast, friendly service - or we'll refund your money.  
133,572 Happy Customers & Counting
Need tech support?
1300 769 448
Extended hours, 7 days a week
Home  /  geekspeak  /  Netflix’s Australian boom isn’t at Foxtel’s expense

Netflix’s Australian boom isn’t at Foxtel’s expense

Streaming services like Netflix were expected to deal a major blow to pay TV giant Foxtel but it seems they can co-exist, with Foxtel subscriber numbers remaining steady as Netflix reaches into almost 10 per cent of Australian homes.

Netflix launched with a bang in March, with Australians keen to see what all the fuss is about. Six months later Netflix already has 737,000 local subscribers, according to Roy Morgan Research. Up to 200,000 of those were already paying for the US Netflix service, bypassing geoblocking designed to keep out foreigners. Now that Netflix is available locally, subscribers can easily switch between the two libraries to enjoy the best of both worlds.

Netflix’s rapid rise makes it Australia’s second most popular subscription video service after Foxtel, which after 20 years has a foothold in 2.34 million Australian homes. Netflix dwarfs the streaming video competition, with local internet video services Quickflix, Presto, Fetch TV and Stan only having 177,000 subscribers between them even though they all had a head start on Netflix.

While Netflix is seen by many as a major threat to Foxtel, subscriber figures don’t indicate a mass exodus from the incumbent pay TV service. Foxtel subscriber numbers have actually grown slightly since the start of the year, helped by new plans and the launch of the iQ3 video recorder (although it’s still a work in progress). “Churn” rates – the number of people abandoning their Foxtel subscription each month – have also fallen.

Many Australians are frustrated with Foxtel’s package model – forcing you to pay for a lot of content you don’t want – but it seems most people don’t see Netflix as a viable alternative. Less than 10 per cent of Foxtel customers have also signed up for Netflix – some of which will be evaluating the free Netflix trial. Were they all to abandon their Foxtel subscription, it would still leave the pay TV giant with more than 2 million paying customers.

Rather than a direct competitor to Foxtel, Netflix is looking more like an add-on service.

The limited overlap in content between the two services is a likely factor. Netflix Originals such as House of Cards, Daredevil and Marco Polo are not available on Foxtel. Meanwhile Foxtel’s premium HBO content such as Game of Thrones and True Detective is not available on Netflix. Foxtel also has the advantage of exclusive live sport such as AFL and NRL matches.

Netflix is certainly a welcome addition to Australia’s media landscape, but it’s not looking like the Foxtel-killer that some people expected it to be.


Recent News

The ongoing Coronavirus pandemic – which is, let’s not mince words here, a very serious issue indeed for every Australian – is seeing some swift and much-needed changes to the way we live our lives in order to maintain public health in these very difficult times. There are numerous businesses that are suspending operations, or

You’ve arrived home with your fancy new laptop and want to make sure that laptop lasts as long as possible. Good on you for thinking ahead and taking pride in your purchase! A laptop should last you many years if cared for properly. This article will explain some tips and techniques to ensure a long

The ongoing issues around the COVID-19 Coronavirus have many companies (where it’s applicable) trying to sort out ways for their workforces to work remotely, aka “work from home”. It’s an area I can actually claim a decent amount of expertise in, because I’ve mostly worked out of a home office for the best part of

Vodafone recently launched its 5G network, joining the other big industry heavyweights Telstra and Optus in offering its customer base access to (potentially) quite high speed 5G broadband and mobile services. The potential of 5G is quite high; while what we’ve got in Australia now is what’s typically called “mid-band” 5G, operating mostly at 3.5Ghz

Coronavirus (COVID-19) Update

Learn about the precautions we are taking and our new contactless pick-up and remote service options. Read More
Get help setting up your home office or homework area today. Learn More