Netflix setting up Sydney office
Netflix is establishing a presence in Australia, setting up a Sydney office and making local hires (Sydney Morning Herald).
Key points:
- Former LinkedIn and Yahoo public policy specialist Nick O'Donnell is Netflix’s local director of public policy
- Former Twentieth Century Fox head of publicity Sarah Haines is publicity manager for ANZ original content
- Up to ten hires planned for local office
- SMH suggests move signals more local content as local industry pushes for quotas
More local content appears a logical rationale. What about local ad sales? No word of that just yet, but Netflix is raising prices around the world and it remains to be how that will hit subscriber numbers.
Meanwhile, other big networks are launching new streaming services, some of which will be ad funded. Hulu's recent big growth push torpedoes the idea that consumers won't tolerate ads. Most of its subscribers take the cheaper option.
Those launches, by the likes of AT&T, Disney, Viacom and NBCUniversal also threaten to take away some of Netflix's most valuable content. So it will have to create more, and spend more. Hence the price rises - but how far will that money go?
There's no indication yet from Netflix that an ad-funded package is on the horizon. But eMarketer thinks it is coming.
"Pure subscription services like Netflix will, at some point, have to resort to additional monetisation options (i.e., advertising)," according to principal analyst Paul Verna. “It’s also true that hybrid models will also face upward pricing pressure.”