NEW YORK – Over the weekend Netflix (NASDAQ: NFLX) announced that the company would shift their international expansion plans from Australia to Europe. According to sources, the reason for the shift was Netflix’s inability to sign contracts with Australian content owners despite attempting to negotiate for more than three years.
Netflix doesn't want to compete with it's VPN service by setting up in Australia. Why bother paying Australian prices for Australian rights when they can sell it anyway?
Rupert will not be happy!
"According to Informa analyst Tony Brown the answer is simple, ‘we’re now living in what is increasingly a global content village, particularly in the Anglosphere, where people can get the content from anywhere at any time, instead of setting up local subsidiaries.’ As such, Netflix is no longer looking to set up subsidiaries in the English-speaking world and will instead focus on non-English markets where the content library is not strong but where the company can negotiate competitive licensing terms.This will allow the company to accumulate an impressive library at a very low price, which will ultimately make Netflix very hard to compete against".
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