Business Insider spoke to three CEOs of Australian streaming media companies for their perspective on today’s announcement that US giant Netflix is launching in Australia in March 2015. More on that here.
Here’s what the CEOs of Stan, Quickflix and EzyFlix.tv had to say:
Mike Sneesby, CEO of Stan the Fairfax Media/Nine Entertainment joint venture
Educating the market is a job competitors can work together on, according to Sneesby.
“There is absolutely no doubt that taking the market from virtually o% penetration to 40% penetration is a category job,” he told Business Insider.
“Netflix coming into the market, whilst we know they’re going to be our competitor and we’ll compete for share, we’ll both be growing the market from 0 to 40%.
“I’ll happily shake Reed Hasting’s (Netflix CEO) hand and say if we can get this market to being 40% or 50% penetration sooner, it’s a bigger market for us to compete for.
“There’s a sense of yes we do have to compete but there’s also a sense of we have to educate Australian consumers and give them a product that they will love.
“It does come down to … competition in the market is going to drive the growth.”
Stephen Langsford, CEO of Quickflix
Langsford is looking forward to the competition. Netflix, he says, will held drive take up of streaming media.
“I think it is much anticipated and 2015 will be a big year for streaming,” he said.
“This will assist in streaming going to the mainstream.
“We’re in the market, we’re across all devices, we’ve got the content and streaming’s growing at 20% quarter-on-quarter.
“They’re certainly a competitor but they will have a very positive effect on building the category.
“As we know, there are some players which haven’t even launched a service yet.
“I’d prefer to be in the Quickflix position.”
Craig White, CEO of EzyFlix.tv
He welcomes the official availability and launch of Netflix and wishes it would come even sooner.
“Netflix will be the trojan horse of increased awareness and consumption of online video in Australian and New Zealand, which still languishes international markets,” he said.
“Total online spending on filmed entertainment represents less than 10% of the total home entertainment market, which is still dominated by renting and buying DVDs and Blu-ray.
“Netflix and other SVOD (subscription video on demand) services are highly complementary to EzyFlix.tv, which is uniquely differentiated in that it offers early access to the new release movies from every major Hollywood studio.
“SVOD services, including Netflix, won’t have early access or new release movies as is already evident in Netflix’s home market in the USA. Consumers will be binge-viewing quality TV and a ‘back’ catalogue of films via these services, and still continue to want to watch the latest new release movies through services like EzyFlix.tv.”
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