SYDNEY: Netflix the US streaming entity has entered into a partnership with Optus the second largest telecommunication company in Australia. Netflix has announced that it is launching in Australia on March 24. In early days of launch Netflix will provide a six-month free subscription to all the to new and recontracting Optus customers on certain broadband and mobile plans.
Netflix – the producer of hit shows including House of Cards and Orange is the New Black – has already struck an un-metering deal to tap into the customer base of Australia’s No.2 internet service provider iiNet.
The Optus partnership will also offer an un-metering for Netflix for all its home broadband customers from April 17.
Deals with telecommunication companies help streaming companies grow their market share, and so far two out of the three new subscription video-on-demand (SVOD) players have entered such partnerships.
Last week. Foxtel and Seven West Media’s Presto signed a re-seller agreement with Telstra, Australia’s biggest telecommunications company.
Such a deal was always expected, considering Telstra owns half of Foxtel, with News Corporation holding the remaining 50 per cent.
The agreement allows Telstra to bundle Presto across their product offerings, with Foxtel saying it will “contribute dramatically to the expansion of consumer awarness of the Presto service”.
Stan, a $100 million joint SVOD venture between Nine Entertainment and Fairfax Media – owner of BusinessDay and The Australian Financial Review – is yet to sign a telecommunications deal.
Some analysts and industry executives have questioned whether the Australian market can sustain two streaming services, let alone four. Perth-based Quickflix is the fourth SVOD player.
Foxtel chief executive Richard Freudenstein has said the SVOD market will be “very competitive” and “noisy”, and unlikely to deliver any immediate returns.
Meanwhile Stan chief executive Mike Sneesby said the service would take three to five years to break even.
But Optus chief executive Allen Lew is confident the Netflix deal will deliver benefits.
“Partnering with the world’s largest and most recognised internet TV service is a significant milestone for Optus as we look to bring a more superior TV experience to customers across our fixed and mobile platforms,” Mr Lew said.
