Netflix and Ten Network In Talks For A Joint Australia Content Partnership

netflix logoNetflix has been in talks with Ten Network regarding the partnership of the popular U.S. video streaming service in the hopes to increase its power against the joint ventures Seven and Nine networks have backed.

It’s a surprise move, as Netflix is in preparation of bringing its service to New Zealand and Australia.  This service, set for arrival in March, will not include the same content as the U.S. service and is anticipated not to be near as attractive to attain.

However, if Ten agrees to the partnership, it’ll be Netflix’s first time to adopt a significant partnership anywhere after it has embarked on the “stand-alone” service premise.  Netflix officials have contacted the executives of Ten last year, where talks ensued about the funding of new programs and marketing initiatives.

With the idea of selling Ten stalled, a joint venture with Netflix could give the program the funding it needs. Ten is thought to be keeping options open but talks are still in the works.

Foxtel, a pay-TV operator, has talked to Ten about partnering with Presto, the company’s streaming service. However, the talks have been a bit complicated due to the sale process that hangs over Ten.ten logo

However, Bruce Gordon, a Ten shareholder, refuses to support any takeover offers from the slew of companies that have expressed interest, which is why there has been no progress. Rather, than accepting the bid from U.S. cable company Discovery Communications and Foxtel, he has released his own proposal.

Australia is an absolute challenge for Netflix. Although the company has more than 57.4 million users and earned $1.89 billion it still has yet to announce what content it would offer. It’s believed that the company is facing problems in securing content for Australia.

Due to some subscribers being able to bypass the geolocation with certain tools, the popular streaming service began blocking them. And, since Netflix has a block in Australia to the U.S. version, it could result in service subscribers leaving if the new about to be released service isn’t up to par.

Netflix is in competition with Presto, a Foxtel and Seven partnership, that’s been able to lock in exclusive programming and movies and offers an aggressive pricing strategy. It also faces another tough competitor in Fairfax Media and Nine “Stan”, which also provides affordable exclusive content.

Due to Ten’s recent increase in audience among younger age groups, Netflix could look more appealing for a subscription.

Netflix has a tentative release date in March, and Netflix spokesman said content, launch date and pricing would be forthcoming.

Last month, Netflix said it was looking to launch in 200 countries.

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