Don Groves is a Deadline contributor based in Sydney.
Warner Bros, Disney, Village Roadshow and MGM films may not be missing from Australian pay-TV screens for long, despite the decision to dissolve their joint venture The Movie Network. Each studio is negotiating with dominant platform Foxtel and Deadline has learned the first licensing deals could be signed within two weeks. That would see those studios’ films screening on Foxtel by March or earlier as part of the paybox’s unified movies service. The seven TMN channels will disappear from Foxtel on December 31 when the current contract expires. TMN shareholders had no option other than to pull the plug when Foxtel rejected any idea of the separate channels continuing. Those studios are realizing they will have to accept less lucrative terms as Foxtel cuts costs and reduces the number of movie channels after buying the other major service Showtime from Paramount, NBCUniversal, Fox, Sony and Liberty Media in October. Foxtel is poised to announce a new lineup of rebranded movie channels and a new pricing structure, perhaps as early as Sunday. TMN has appointed Deloitte as liquidators. About 10 TMN staffers are expected to be offered jobs at Foxtel.


Does Australia yet have a strong Netflix-like player to disrupt this premium channel monopoly? They have something called Quickflix, right? I guess Netflix is too busy expanding to the UK, Ireland, and Scandinavia while spending big on content for the American market.
To complete my thought: Australia sounds like a ripe opportunity for Netflix, but it’s doubtful investors would allow it to happen while they bleed money in the European moves and content wars on the domestic front. The big fat synergy of a Aussie/New Zealand move would be the English language. Why go for Scandinavia before our colonial cousins in the Antipodes?
Down the road, Netflix could simply buy the aforementioned Quickflix.
The huge global demand for Hollywood movies demomstrates that language is no real barrier. Netlfix must use other cosideratioms when decidng where to expand.
To answer Johnny Ringo – nope.
Australia is decades behind with things like this, many people are still on 1.5mb ADSL… and the government is rolling out super-fast high speed broadband, but if the conservatives get into power in 2013 they’ve said they’re going to stop it.