Netflix vs Stan - Part 1/3
Today we look at the Streaming Video on demand service, or
SVOD, as popular media abbreviates it, within the Australian market.
The SVOD market is due to be one of the most disruptive
shifts in media consumption within 2015. It has been described by the Sydney
Morning herald as “…the demise of free-to-air television but a catastrophe for
pay television operator Foxtel.” [1]The
significance of Netflix on this sector is undoubtedly present, however where
did Netflix come from, and more importantly for our blog, how has advertising
assisted in it’s success?
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| Source: http://www.cordcuttersnews.com/wp-content/uploads/2014/09/netflix-logo.png |
Netflix is the US SVOD giant that has been slowly expanding
its reach to all corners of the world. It was founded 18 years ago in 1997
(when DVDs were still a thing) and was a blockbuster-like service where you
paid a monthly fee, Netflix would post dvds to you which you would then return
via the post. Pretty cool right?
With the rise of the internet, Netflix began uploading the
catalog of DVDs to an online distribution –like a youtube for DVD’s – this
included movies, tv series, documentaries – If you were interested in it,
Netflix had some video content for you.
An advert from Netflix after their digital catalog came to fruition
In 2013, Netflix has close to 30 million subscribers in
America. Globally, they had over 31
million. As you can imagine, there was a massive opportunity for Netflix to
enter other markets internationally and advertising realised the potential for
Netflix to succeed in other markets.
Within Australia, Stan was standing in Netflix’s way...
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| Source: https://bandt-au.s3.amazonaws.com/information/uploads/2014/11/stan.png?544097 |
Stan is the home grown SVOD service between Fairfax media
and Nine network. It entered the market on the reputation of Australian
comedian and actress, Rebel Wilson, with a budget that can be deemed as
excessive. It did this one month before Netflix entered the market, giving them
the first mover advantage….
Rebel Wilson features in Stan's opening advert
Thats the end of part 1! Part two of this Netflix vs Stan series examines at how the two companies have
battled it out through media and advertising and how their efforts have affected consumer
perceptions surrounding SVOD services.
- By Jacob
- By Jacob
[1] http://www.smh.com.au/business/media-and-marketing/arrival-of-netflix-and-svod-set-to-change-australian-tv-20150327-1m8zlo.html
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