Quickflix Australia complains to Netflix

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NonprayingMantis

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#1130850 17-Sep-2014 17:28

Killerkiwi2005:
your assumption here is that Netflix pays a proportion of each subscribers revenue to the content provider.

That is not the case. This is Quickflix's main point. Did you even read the letter?

Almost all of Netflix's content deals are on a flat fee regional basis (i.e. pay $xm for the rights to stream in the USA, pay $xm for the rights to stream in Canada etc etc), and do not fluctuate based on how many subscribers they get.

This means that every incremental subscriber they get for regions where they have not paid the rights, is pure profit for them. They don't pay any extra to the studios.

So what? thats the studios call to have agreed to a fix fee, if the are that worried they would go for a few cents per play fee like spotify

I choose to stop here, you seem to believe the current mainstream distribution model is fine, so I agree to disagree and its sunny outside

Nope, I'm just saying Quickflix have a valid point that Netflix aren't playing by the rules, and that what they are doing is tantamount to copyright infringement.

(FYI - I use Netflix too)

syousif

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#1130867 17-Sep-2014 17:42

does Netflex actually share that they only pay fixed fee for content delivery in a region or do they pay per user/revenue generated?

also Quickflex should look at how they are doing business, if they are losing customers to an overseas company that has done no advertising in the region and people are going through loop holes to get to them that only means people dont really like Quickflex.
being it content, price or the whole user experience, people would rather go to Netflex just means Quickflex is not giving what people want.

also if the content providers are happy with the measurement put in place by Netflex, then that is all Netflex will do. as long as their content providers are happy as to how they deliver not have to listen to overseas company that is in decline and complaining to Netflex they are losing business to them.

Netflex answer most likely be if we have more customers than you without even being present, what do you think will happen if we come through the "Front Door"

ubergeeknz

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#1130869 17-Sep-2014 17:46

syousif: Netflex answer most likely be if we have more customers than you without even being present, what do you think will happen if we come through the "Front Door"

They cannot do so with the same content. Which is exactly what people want.

syousif

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#1130871 17-Sep-2014 17:51

ubergeeknz:
syousif: Netflex answer most likely be if we have more customers than you without even being present, what do you think will happen if we come through the "Front Door"

They cannot do so with the same content. Which is exactly what people want.

for a while, but if you are a content owner who are you likely to do business with/sell your content to? Netflex or Quickflex? all the new shows would be going to Netflex and more and more people end up signing and thus Netflex would have same as what they have in the US/Canada.

loceff13

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#1130917 17-Sep-2014 18:44

Netflix only have an obligation to take reasonable steps to prevent people outside the UK/UK etc signing up which they already do, maybe if Quickflix wants them to be on top of it they should bill Quickflix for their time.

sen8or

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#1130918 17-Sep-2014 18:45

I believe that Australian courts have already ruled that bypassing regional restrictions is not illegal, that was in regards to dezoning DVD players, can't see why that ruling would not be extended to internet geo blocks, hence why quickflix haven't gone to court

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JimmyH

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#1130949 17-Sep-2014 19:35

NonprayingMantis:

as for flat/fixed fee, have a look here:

http://ir.netflix.com/faq.cfm#Question31141

"How do you account for streaming content?

We generally license content for a fixed fee and a defined time period with payment terms varying by agreement."

I would be startled if the fixed fee negotiated with content providers wasn't in some way related to the number of subscribers Netflix has. If they have 2 million subscribers they pay $X, if they have 20 million subscribers they pay $Y. So they sign up another 230,000 customers (say 200,000 from Australia and 30,000 from NZ) then their subscriber base goes up. This higher number of viewers is reflected in their next licencing negotiation, in just the same way as if they had added more US-based subscribers - which from its perspective, and that of studios, it just has.

So Netflix pays for the content it streams. No theft going on here.

QED

As an aside, there's quite a good take on the Quickflix letter Here

Dratsab

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#1130969 17-Sep-2014 19:56

NonprayingMantis: but it's actually netflix doing the violation, not the end customer.

Yes, they're hijacking our interwebs and forcing us to watch their content. Please make it stop!!

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