01.Geo-blocking no barrier to media-savvy consumers
Personal money management software company Pocketbook reports that, based on its users' spending data, subscription-based Netflix is the second-most popular source of paid entertainment content in Australia after Foxtel, eclipsing its local copycat offering Quickflix and DVD rental outlets.
This is despite the fact that Netflix operates in the US and requires Australian users to overcome geo-blocking by using a virtual private network, or VPN.
Based on its members' spend on media, Pocketbook found that about one in four are paying for Netflix as of January 2014. Foxtel still dominates, with almost 50% of the media subscription or rental services spend, while Quickflix is languishing at around 6%.
Netflix is likely to enter the Australian market next year, making access easier for Australian consumers. Pricing hasn’t been determined, but users currently pay about $10 per month, significantly cheaper than Foxtel which can cost $100 per month or more.
The research didn’t take into account iTunes, Google Play, Spotify, Pandora, or Xbox purchases.