Presto boss: ‘Netflix in Australia will be an inferior product’
L:R Shaun James, Eric Kearley, Damian Keogh, Kylie Merritt
The head of Foxtel’s movie streaming service Presto has told a forum Netflix will be an “inferior” service in the Australian market, while also dismissing the threat of Freeview Plus and the StreamCo joint venture.
Speaking at Thursday’s ASTRA conference Shaun James, director of Presto and video on demand at Foxtel, said Netflix has “phenomenal brand awareness in this market” admitting “we have got in terms of raising Presto’s brand awareness”.
But he added: “It will be an inferior local service because of the rights that currently sit with Seven, Nine, Ten, ABC, Foxtel and, you know, they have looked at this market and they’ve seen that.”
Asked about the lack of advertising for Presto on Foxtel James said there were no plans to ramp up its presence there, whilst admitting that would be a major boon for the joint Nine Entertainment Co and Fairfax streaming play StreamCo, but added: “But I think the point I’d make there is Foxtel grew at 5.6 per cent last year in terms of sub numbers and our profit grew.
“Those two businesses (Nine and Fairfax) have got well-documented issues, so I think it is defensive and I think they are looking at safety in numbers. And the other thing I’d say to that is that we are still yet to understand what the content offering is, what the pricing is, what the platform is.
“We have seen a lot of announcements about, you know, tens of millions of dollars and executive appointments and we’re still waiting to find out what this thing actually is.
“We are up and running and we are going to go really aggressively.”
James made the remarks on a panel with Telstra head of IPTV Eric Kearley and CEO of Hoyts Damian Keogh. Moderator Kylie Merritt, digital director for the Australian News Channel, asked the panel about this week’s Freeview Plus launch.
“Are all the free to air broadcasters signed on?,” said James, of the new joint HbbTV play between ABC, Seven, Nine, Ten and SBS . “Because that would be the first thing.”
When asked Hoyts CEO Keogh said: “I don’t think I can answer that because I haven’t watched free-to-air TV for about 15 years.”
Nic Christensen
Beyond delusional.
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Hubris, free with every Foxtel subscription. If Foxtel aren’t the most arrogant people in Australian broadcasting I don’t know who is.
Foxtel has been in Australia for almost 20 years, in that time they’ve managed to obtain about 35% of households – not a great reflection of their ability to sell their ‘amazing and world class content’.
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VPN’s are not illegal! Exercise your rights as a consumer and vote with your wallet. There is not a single legitimate (IMHO) reason why Australians shouldn’t be signing up to Netflix proper (US version) and get full access to the latest content.
Also thank the gods that Netflix exists and has shaken up local pay TV providers to get there act somewhat together. I think it’s too little to late personally. Bit like Video Ezy it is facing a sad death spiral.
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Interesting when his comments don’t talk about what Presto has or how good they will be, just how bad everyone else is. If you have nothing good to promote, then its easier to bag the competition – says it all really.
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LOL!
No one can predict what will happen.
Everything is now up for grabs in such a fragmented and changing media landscape.
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Funny how people with over priced, substandard product invariably dismiss the real competition.
I wonder how many people buy foxtel solely for sport?
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@Sydney2100 – Presto is operational, live and ready for you (and anyone!) to view now. More recent films that what’s available on Netflix.
Before I get IP-stalked by the friendly mUmBRELLA crew, yes I work at Foxtel. Not pushing the product here, just giving you an objective statement of service availability 😉 Check it out!
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Still don’t see any talk of the issue of pricing. I switched to Netflix a year ago. I pay for broadband on top of the $10 a month for Netflix and use VPN to get US or South American content. Unless they price realistically I will continue and as more people get clued in to how easy it is to bypass local providers they will have to rethink.
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35% of the Aussie population are prepared to pay a premium to watch sport. End of. The fact that you get loads of adverts on a subscription model is pretty off too…
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Foxtel should know a thing or two about inferior product. How many years has streaming been a thing and they still don’t have a 1080p service?
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Pfffff, Foxtel = experts at extrapolating profit from an inferior, overpriced product
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1080p … 1080i. Of the 35% of people who get Foxtel I reckon 1% would give a stuff … it’s HD.
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He sounds like Sol Trujjio (ex head of Telstra) when he said that Apple had no chance of making phones = delusional
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Netflix are actually upfront about the fact the content will differ territory to territory: https://www.youtube.com/watch?v=LxnpqobGSzg&index=7&list=PLvahqwMqN4M3HhXOhAybp03ysb6uxBXUf
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Hey Hey. Netflix is operational now, I and i think 200,000 Aussies use it! Welcome to the future. BTW SPORT ON FOXTEL WILL BE DEAD SOON.
HELLLLOOO NBA, NFL, EPL, AFL LEAGE PASS THE NETFLIX OF SPORT 😛
[Edited for legal reasons by Mumbrella]
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Most of the networks have short term program rights.
Netflix has the same challenges in the US. Netflix is largely a second view strategy model and make their own 1st view content.
Unless the networks come up with a similar model, they are going to lose. I would have thought, that is why the FTA’s were given access to additional digital channels…. so they have been given the opportunity and wasted it.
Foxtel, admit you are fighting a losing battle. If the channels you represent are going to get more revenue from a smarter subscription model, they will move to it.
If it’s yours, then well done. If it becomes Netflix, Amazon, Stream Co…. you at least had the chance to keep them and were too slow to move. Only yourself to blame really. So stop complaining.
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From the ABC. Thank god for half decent journalism.
https://www.youtube.com/watch?v=sQsqpJzlav0#t=93
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It’s all moot, regardless.
Just go to getflix.com.au and, if you’ve got a smart TV, you can get netflix US version running in Australia quite easily.
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