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Netflix, Inc. (NFLX)’s Australia Entry Paves Way for Removal of Data Cap

Netflix, Inc. (NASDAQ:NFLX) is finally making its mark in the Australian media industry having debut its streaming service in the country as well as in New Zealand. Industry observers are however warning that the country is on the brink of experiencing the ‘Netflix effect’ that is typical with any streaming video-on-demand service, entering a new marketplace.

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Netflix has already made it clear that it wants to end metered internet in Australia, a move that will make internet relatively cheap for many Australians for viewing content online. Prior to Netflix, Inc. (NASDAQ:NFLX) entry into the market, Australian’s behavior online has always been unique partly because of data plans that made it extremely impossible and expensive to watch content online.

Internet service providers are set to incur huge network costs as more people opt to watch content online instead of traditional TV. However there are plans underway to remove some of the restrictions to relegate the metered internet story, affirms Akamai Global marketing chief officer Brad Rinklin. Akamai is making strides in the delivery of content online having recently delivered online broadcast coverage of the just concluded world cup cricket.

Removal of some of the caps and restrictions is sure to be good for streaming services offered by the likes of Netflix, Inc. (NASDAQ:NFLX) and Stan as content viewing shifts from cable TV to online viewing. Internet of Things is another aspect of business that is set to change with the removal of the restrictions as all sorts of devices will be connected to the internet helping change the way marketing is carried out online.

Internet speeds is another headwind that needs to be addressed if Australians are to continue watching content online. Many Australians are staying clear off video-on-demand because of the slow connection speeds, which are turning out to be the most important barrier to streaming. Optus and iiNet have already signed deals with Netflix to provide customers with unmetered data usage. However the speeds are still low meaning many people are not be able to access Ultra HD content that requires speeds of up to 25Mbps.

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