Virgin ‘pre-empts’ Netflix Australia

A consortium with links to Sir Richard Branson’s Virgin Group is reportedly in talks with Australian broadcasters to launch a video-on-demand service to beat Netflix’s anticipated arrival in the country.

Executives from the group have met with Aussie TV execs in the past two months to discuss a VoD offering that would pre-empt the US streaming giant’s launch, according to The Australian Financial Review.

The talks are said to be at an early stage but would open up an opportunity for a challenger to jump the gun on Netflix, which has registered trademarks in Australia but is yet to launch there.

Pay TV platform Foxtel is due to launch its Presto service this week, a formidable competitor to existing Oz SVoD service Quickflix and those free-to-air networks are due to roll out later this year.

The AFR claims the execs are developing a business plan to “corner the SVoD market” in seven potential countries where Netflix does not yet have a presence.

Seven West Media has also held initial talks with cinema chain Hoyts Group about possible collaboration for a VoD offering, according to the paper.

California-based Netflix currently has 44 million users – most of them in the US – with a US$7.99 a month fee.

Netflix has already launched in the UK, Ireland, The Netherlands and Nordic territories, but the SVoD service is yet to roll-out in major European territories such as France and Germany. It is already available via Virgin Media cable, now owned by Liberty Global, in the UK.