Another 400 000 Aussies streaming Netflix in June

Wed 15 Jul

It seems like just a few weeks ago (because it was) Roy Morgan’s May figures showed that a million Australians in 408,000 homes already had Netflix. Well, scrap that. Our survey results for June have been counted and weighted—and it’s now more like 1.42 million people in 559,000 homes.

Netflix subscription rates vary dramatically across different internet service providers and type of connection. When the US-based subscription video on demand (SVOD) service launched locally in March, fixed internet providers including Optus and iiNet made deals to offer inducements including extended free trials and unmetered streaming to new or existing customers. 

By June, 16.8% of households with fixed broadband through iiNet (or one of its standalone subsidiaries Internode, Westnet and Adam, all with equivalent deals), had Netflix—a rate almost three times the total norm of 6.1% and exactly double the 8.4% uptake rate among fixed broadband homes. 11.7% of Optus’s fixed broadband customers had Netflix—almost 40% above the fixed broadband norm.

In numbers, this means 113,000 Netflix homes are streaming through iiNet’s fixed broadband network, slightly more than the 102,000 using Optus despite the latter supplying fixed broadband to almost 200,000 more homes overall.

June 2015: % and Number of Households with Netflix, by Fixed Broadband Provider:

Source: Roy Morgan Single Source, June 2015 n = 2,208 Australians 14+. * iiNet Group includes iiNet and subsidiaries Internode, Westnet and Adam.

Telstra has yet to dangle any Netflix-related carrots, but reportedly may be planning to soon. As of June, just 5.2% of Telstra’s fixed broadband customers were using Netflix. However, even this below-average uptake was enough to give Telstra—due to sheer market dominance—more Netflix homes (142,000) than any other ISP. 

9.1% of TPG’s fixed broadband homes (44,000) had Netflix in June. TPG was been rumoured to be negotiating its own unmetered Netflix deal. However our survey shows its customers are already over four times more likely to say they chose TPG because of unlimited data allowance in the first place, so ‘quota-free’ streaming is perhaps less of a lure.

Conversely, these results show that 25% of Netflix customers have fixed broadband with Telstra, 20% with iiNet, Internode, Westnet or Adam, 18% with Optus, and 8% with TPG. Another 13% either have fixed broadband through a smaller provider (such as M2 Group’s brands Dodo and iPrimus) or didn’t know their home’s ISP. The remaining 16% of Netflix subscribers don’t have fixed broadband—instead nearly of all of these streamers have some form of mobile broadband connection.  

Currently an estimated 390,000 homes have an NBN internet connection—a new peak perhaps in part driven by appetite for SVOD: 9.6% of NBN homes have Netflix.