Early Win for Netflix, Inc. (NFLX) in Australia, according To iiNet Data

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Netflix, Inc. (NASDAQ:NFLX) witnessed a strong early gain in Australia, in the video-on-demand service subscription. The company could attract 15% of the traffic of iiNet’s internet service, suggesting the early trend in gain. The internet service provider has been promoting unlimited downloads in Australia. iiNet enjoys nearly one million customers support.

Free First Month Service

As part of attracting more customers, Netflix, Inc. (NASDAQ:NFLX) offered a free first month subscription worth $8.99. Within two days, the company could attract 15% of customer traffic. However, both the companies failed to provide the results of the launch, i.e. subscribers’ addition list since its launch. An iiNet spokesperson reportedly said that the company was excited by the response from the public.

The American company also struck an unlimited agreement with the second biggest telecommunications company in Australia, Optus. However, Optus refused to disclose the number of subscribers it could add or the total consumer traffic in relation to Netflix services.

Netflix, Inc. (NASDAQ:NFLX) faces tough competition in Australia, since the media firms have also unveiled their subscription services of video-on-demand. For instance, Seven West Medial and Foxtel have aligned on Presto. Similarly, Nine Entertainment Co has aligned with Fairfax Media, which also owns the Australian Financial Review, as well as Business Day.

Any Space Available

There seems to be some question whether there will be any space available in Australia for the three service providers of video on demand subscriptions. Paid TV service provider, Fetch TV’s CEO, Scott Lorson, believes that the business model in Australia indicates that there will be few spots for the winners on the podium.

Fetch TV’s CEO expects Netflix, Inc. (NASDAQ:NFLX) to succeed, since it partnered with iiNet. He said that he expects higher turnout of subscriptions and the first week results have exceeded expectations. Currently, approximately 200,000 people in Australia were able to gain access to Netflix through VPNs.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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