The executive who does not want to be named because of his close links to Netflix said that in the USA Netflix delivers 35% of ISP broadband traffic, in Australia Netflix is already taking up to 30% of all broadband traffic and that Netflix subscriber numbers could already be over 1.5Million and growing.
ISP’s who are now having to expand their broadband network infrastructure to handle the increased traffic in Australia, have estimated that by December 2015 that paying Netflix subscribers could be as high as 1.8 Million.
“Foxtel are well aware of the volume of subscriptions that Netflix has generated in Australia and they are now seriously concerned” said a key hardware partner.
Yesterday Digital TV Research’s Global OTT TV & Video Forecasts report estimates that Netflix will have 69.90 million paying subscribers by end-2015, up by 28 per cent from 54.48 million at end-2014 and that by December 2015 Australia would deliver 350,000 new subscribers, the number has been laughed off by people close to Netflix.
A senior ISP executive said that the he increase in Australian subscription numbers will result in a “significant” upgrade in content.
“Currently Netflix pay Hollywood Studio’s 50% of their revenue for content and as a direct result of the increase in Australian subscribers Netflix is now in an position where they can pay for additional content rights for the Australian market. This will result in new and current content being made available for the Australian market between now and the end of the year” they said.
According to analysts the next Foxtel financial results could be “telling” for the pay TV operator who is currently handling large volumes of subscribers cutting back on their packages.
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