Netflix’s outlook in Australia depends on its ability to overcome the threat of internet piracy as its main source of competition (Idato 2015). It is anticipated that Netflix will be likely to succeed in this conflict in the long term due to the introduction of the Copyright Amendment Bill 2015 (Grubb 2015), which seeks to reduce the online piracy rate of illegally downloaded TV shows. Netflix’s extendable core is its ability to be viewed on almost any technological device, making it easier for former pirates of its content to switch to a legal means of streaming by purchasing the product (Swan 2015).
However, Australia currently possesses the highest rate of online piracy in the world, causing Netflix to lose a large proportion of its potential customers (Price 2015). In addition, the effects of the Bill are long-term orientated, meaning that online piracy will still be an issue in the short term. Furthermore, Grubb (2015) elaborates that choosing to block access to piracy sites may result in free riders sharing Netflix accounts, resulting in a loss of potential profit for its business. …show more content…
To overcome the free rider problem, Price (2015) explains that Netflix intends to make it illegal for consumers to share Netflix passwords, as it did in the United States. As an added incentive, Netflix’s prices are kept extremely low in order to entice Australian consumers to use their product. From this, it is extremely likely that Netflix will be able to overcome the threat of Internet piracy and dominate the Australian market in the long
However, Australia currently possesses the highest rate of online piracy in the world, causing Netflix to lose a large proportion of its potential customers (Price 2015). In addition, the effects of the Bill are long-term orientated, meaning that online piracy will still be an issue in the short term. Furthermore, Grubb (2015) elaborates that choosing to block access to piracy sites may result in free riders sharing Netflix accounts, resulting in a loss of potential profit for its business. …show more content…
To overcome the free rider problem, Price (2015) explains that Netflix intends to make it illegal for consumers to share Netflix passwords, as it did in the United States. As an added incentive, Netflix’s prices are kept extremely low in order to entice Australian consumers to use their product. From this, it is extremely likely that Netflix will be able to overcome the threat of Internet piracy and dominate the Australian market in the long