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Australia Cloud Privacy Television Entertainment

Quickflix Wants Netflix To Drop Australian VPN Users 172

ashshy writes 200,000 Australian residents reportedly use Netflix today, tunneling their video traffic to the US, UK, and other Netflix markets via VPN connections. A proper Netflix Down Under service isn't expected to launch until 2015. Last week, Aussie video streaming company Quickflix told Netflix to stop this practice, so Australian viewers can return to Quickflix and other local alternatives. But Quickflix CEO Stephen Langsford didn't explain how Netflix could restrict Australian VPN users, beyond the IP geolocating and credit card billing address checks it already runs. Today, ZDNet's Josh Taylor ripped into the absurdity of Quickflix's demands. From the article: "If Netflix cuts those people off, they're going to know that it was at the behest of Foxtel and Quickflix, and would likely boycott those services instead of flocking to them. If nothing else, it would encourage those who have tried to do the right thing by subscribing and paying for content on Netflix to return to copyright infringement."
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Quickflix Wants Netflix To Drop Australian VPN Users

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  • Why is Netflix not available in Australia?

    • Re: (Score:3, Interesting)

      by spire3661 ( 1038968 )
      Same reason Blizzard never put servers there. The Australian Telcos have the continent by the balls, no one wants to do business there.
      • According to TFS Quickflix apparently wants to.

        • by suutar ( 1860506 ) on Tuesday September 16, 2014 @11:26AM (#47918407)

          Quickflix's biggest shareholder is an Nine Entertainment, which appears to be their ticketmaster and clearchannel equivalent. They don't appear to be a telco but they do seem likely to be in bed with them.

          • by dbIII ( 701233 )

            They don't appear to be a telco but they do seem likely to be in bed with them.

            There's some Murdoch ownership there, via Sky, owned mainly by Mordoch like Foxtel is. Whether the link is enough to set policy is a bit of a guess but Rupert has a habit of taking a very active interest in anything he owns a part of and tends to have influence far beyond his level of ownership in some things.

          • by mjwx ( 966435 )

            Quickflix's biggest shareholder is an Nine Entertainment, which appears to be their ticketmaster and clearchannel equivalent. They don't appear to be a telco but they do seem likely to be in bed with them.

            Nine Entertainment is closer to Time Warner than Ticketmaster. Ticketmaster is our Ticketmaster.

            Also Nine Entertainment is going broke.

    • Why is Netflix not available in Australia?

      A combination of licencing arrangements with existing distributors and the fact that the market size makes for a not so attractive business opportunity.

      • by MobyDisk ( 75490 )

        "Licensing issues" seems to be the standard reply. But, why would licensing in Australia be different from licensing elsewhere? Isn't a show streamed to Australia is just as profitable as a show streamed to Europe or America?

        • by ashshy ( 40594 ) <pooh@poetic . c om> on Tuesday September 16, 2014 @11:08AM (#47918213) Homepage Journal

          "Licensing issues" seems to be the standard reply. But, why would licensing in Australia be different from licensing elsewhere? Isn't a show streamed to Australia is just as profitable as a show streamed to Europe or America?

          Yes, but Netflix must sign and *pay for* a license in each separate territory. The company pays per show/movie, per market, per year (or whatever licensing timeframe), and it doesn't make sense to roll out an actual service until you have the rights to a decent content library in that new territory.

          Netflix is working on licenses for Australia, but doesn't have a service yet. And whatever agreements it did sign so far likely don't become active until Launch Date X.

          So as usual, it all boils down to costs. Follow the money.

          • by MobyDisk ( 75490 )

            I get that Netflix won't launch in Australia without licenses. So why don't they have licenses? Why can't they get them?

            The only substantive answer I've heard so far is that the companies sold decades-long *exclusive* licenses to someone else. That might tie into your statement "And whatever agreements it did sign so far likely don't become active until Launch Date X." So the implication is that they *can* get licenses, but they won't kick-in until someone else's exclusive license expires? And why was

            • by suutar ( 1860506 )

              They can get them, usually. It just takes time and money to negotiate for them. Eventually they'll have enough and then they can open up service.

            • They can normally license with the holder of the exclusive rights, but in many cases said holder sees netflix as competition and thus wants to charge huge rates for said licenses. That's where time to conduct negotiations comes in. It doesn't make sense for netflix to sign a licensing agreement where the cost is $12/month per netflix customer, after all. Even $1 a customer per year gets quite dear.

        • But, why would licensing in Australia be different from licensing elsewhere?

          Best guess: the content creators use it as a way to extort more money out of people.

          Why go for "just as profitable" when you can have "more profitable". If we can't get more profit, we're not licensing it to you.

          The companies who own the content and are in charge of licensing see people as nothing more than a revenue stream, and want to be able to control what you see so it's on their terms.

          In other words, greedy assholes.

          There's

          • by MobyDisk ( 75490 ) on Tuesday September 16, 2014 @12:00PM (#47918811) Homepage

            I keep hearing "greed" but that is a copout. Greedy people do not refuse to license their products for decades.

            • by whoever57 ( 658626 ) on Tuesday September 16, 2014 @01:52PM (#47920149) Journal

              I keep hearing "greed" but that is a copout. Greedy people do not refuse to license their products for decades.

              They do if they believe that the new channel will cannibalize their existing channels (DVDs) and produce lower net revenue.

              • by MobyDisk ( 75490 )

                Yeah, that makes sense in a sad way. I suppose the music industry thought the same way for a while. Eventually, illegal music distribution services convinced them otherwise. Now, VPN connections are the equivalent for streaming video.

            • by mjwx ( 966435 )

              I keep hearing "greed" but that is a copout. Greedy people do not refuse to license their products for decades.

              Its not the license sellers that are greedy here, its the companies who bought the licenses that are greedy. Companies like Nine and Foxtel in Australia paid for an exclusive license and will hold the licenser to that agreement. Foxtel especially hates competition, they are presently scrotum deep in trying to get ISP's in Australia to start policing users for them (ISP's are blocking this at every turn).

            • by dbIII ( 701233 )
              OK then - greed combined with political and market power. It's about protecting the profits of Rupert Murdoch's Foxtel which is the only game in town - everything else is being kept out.
            • by rtb61 ( 674572 )

              It's called monopoly activity. Someone gets in early and buys up all control because they believe they will be able to charge more than the rest of market by establishing a monopoly. With regard to copyright this also ties into killing the distribution of independent content by turning broadband into overpriced strangle band to make it too expensive for them to digitally distribute content. Now tie this into corruption of government and corrupt three strikes laws disconnected from the net and threats of c

        • Not sure about why, but some countries, including Japan and Australia, get extremely price gouged in regards to CDs (although they often have bonus tracks to dissuade imports), and I wouldn't be surprised if there was a similar situation for film and TV. Giving them something close to American prices would cut into their profits.
          • by MobyDisk ( 75490 )

            Interesting. So maybe they don't want Netflix to cut into DVD sales if DVD sales are more profitable in Australia than they are in the US. That would be a valid reason.

      • It would provide unwanted competition to Rupert Murdoch.
        Your second point is not correct or relevant since people are already using Netflix in Australia despite deliberate steps being made to stop them.
    • by ArcadeMan ( 2766669 ) on Tuesday September 16, 2014 @11:16AM (#47918299)

      It would take too much resources to re-encode all the movies upside-down.

    • Because generally the rightsholders sign exclusive contracts with a company in each "market" (usually either a single country or a small group of countries). The result is netflix can't just go to the original creator of the content and buy a worldwide license, they have to buy licenses for each "market" from whoever controls the rights in that market.

      So if netflix want's to enter a new market (e.g. australia) they have to start their negotiations for content largely from scratch (there may be some indie co

    • Why is Netflix not available in Australia?

      The population of Australia is 24 million. The population of metropolitan New York City, 20 to 24 million, depending on how you choose to define it. If you want a presence in the Asian-Pacific market, Australia doesn't loom large in your thinking.

      • Netflix is available in Canada, and we're 35 million, not much more than Australia.

        Installing their CDNs in Australia should cost about the same as anywhere else.

        So it's probably license related (or should I say license retarded)

      • Which is part of the 'problem' Australians experience - their local companies have enough influence to pass standards at least somewhat unique to Australia, as well as have some of the tougher media controls, yet they're not big enough for most companies to put forth the effort to comply with them, which leaves them lagging.

        • It's not like that at all, we have very lax media controls.
          I know you gun nuts think it's gone all Thunderdome over here since we restricted automatic weapons, but could you please refrain from making up utter bullshit about us on every fucking topic under the sun?
  • You'd think that such companies touting themselves as the masters of the new way of doing business would refrain from the very monopolistic manoeuvres they have been criticizing all along. You'd think...

    • Given a chance, I believe any company would seek a monopoly.

      Given the chance to force consumers to use your product, I think the people who run corporations would jump at it.

      But if you think forcing me to subscribe to your product instead of the competitor I was already happy with ... you'd have to be a complete idiot, and I think these people might be.

      This isn't anything other than trying to force people to use your service, even if your service isn't as good or people aren't interested in it. And that do

  • Idiots ... (Score:5, Insightful)

    by gstoddart ( 321705 ) on Tuesday September 16, 2014 @10:47AM (#47917971) Homepage

    So they want a competitor to cut off customers which they can't serve (or because they can't compete)?

    If your service is good and it's what people want, you will survive. If it isn't, and people go elsewhere ... too damned bad. If I was dealing with a company, and their competitor made them stop providing me service, there is no way in hell I'd go with the competitor, since they effectively blocked me from getting the service I do want.

    This just sounds like "waah, we can't compete with Netflix, so Netflix needs to stop serving the customers we haven't been able to attract". Screw that. Your "local alternative" may not be as good, and the consumer shouldn't be forced into using your crappy product just because you say so.

    I'd be seriously pissed at Quickflix for being self entitles assholes. And I sure as hell wouldn't do business with them.

    Why do companies feel they are entitled to our business? I'll do business with whomever I want.

    These clowns sound like candidates for the B-ark.

    • Comparative advantage: It's cheaper to import, and the dollars not spent on local product thus are spent elsewhere. Local producers expend more effort than foreign, and so are wasteful in the context of the global economy; as they get no business, they go out of business, and their labor and capital investment for long-term operations are freed up to pursue a different endeavor cheaper done locally than imported.
    • Unlike yourself, Quickflix has obtained all necessary Australian rights to the content on its platform, faithfully meets all necessary security requirements, including geo-filtering imposed by the content rights holders, and...

      Netflix has geo-filtering in place, hence the need for private VPNs. In fact, if the reverse was true and non-Australians watched Quickflix movies through VPNs, I very much doubt that Quickflix could do anything about it.

      My guess is that Quickflix is just posturing to get better terms on content licensing. 200,000 is an awful big guess estimate. VPNs are not free (the free ones just aren't reliable). I doubt very much that 200,000 people would put down money for a VPN subscription, on top of a Netflix subs

      • If people are getting VPN subscriptions, it's probably for porn, business, and/or free video streaming services like hulu.com or thedarewall.com

        Don't forget that they have to get a non-australian credit card as well, in most cases. It's one of Netflix's checks. I agree, I wouldn't be getting a VPN 'merely' for netflix unless 'quickflix' just sucks that horribly(and to be fair, it probably does). It's one of those things where VPN use might be very common in Australia because their internet laws are pretty screwed up.

        Oh, and there's another reason for getting a VPN and US credit card - Steam. Australia is one of the more strict nanny-states when

    • Quickflix service and selection must really suck for someone to go through the hassle of getting a foreign bank account and vpn to get what is advertised as roughly the same service for about the same price. I have a netflix account their streaming selection isn't that great, I'd like to see more new movies, although I can't complain about the service it has never been down or slow when I wanted to use it.

    • by sribe ( 304414 )

      If your service is good and it's what people want, you will survive. If it isn't, and people go elsewhere ... too damned bad. If I was dealing with a company, and their competitor made them stop providing me service, there is no way in hell I'd go with the competitor, since they effectively blocked me from getting the service I do want.

      True story from small town Colorado: the tiny local cable service wasn't great, somebody with a satellite TV franchise got the bright idea to buy out the cable company and shut it down. And went out of business because no one would sign up for his satellite service after he pulled that stunt. (Didn't help that someone else got a franchise for the *other* satellite service and could market himself as "not the asshole who shut down cable service!)

    • It is similar to the problem that Uber is having with taxi services. The Australian providers and taxi services are subject to presumably expensive regulations. Due to this expense and other regulated limits on their services, they might be less attractive to users. However, it doesn't take much to understand why the people in those businesses stuck following the rules aren't happy when customers cheat and use unauthorized alternatives. The real answer is to investigate the regulations. Get rid of rule
    • by tlhIngan ( 30335 )

      Didn't the Australian government sort of recommend users to bypass Geo-IP blocks using VPNs and all that as a way to get cheaper content?

      https://www.techdirt.com/artic... [techdirt.com]

    • by AmiMoJo ( 196126 ) *

      To be fair they might be screwed by an inability to licence stuff. A lot of services outside the US have poor catalogues. Even Netflix can't compete with BitTorrent.

  • Amusing (Score:5, Insightful)

    by Dega704 ( 1454673 ) on Tuesday September 16, 2014 @10:48AM (#47917979)
    It says a lot about Quickflix's service when Netflix via VPN is an actual competitive problem for them.
  • If stupid was flammable we'd have already seen the flash and soon would come the boom.

  • If people are paying extra, and going to the hassle of signing up with netflix and dealing with the workarounds for paying and actually getting the service rather than just using your service, I think you're doing soemthing wrong.
  • by thieh ( 3654731 ) on Tuesday September 16, 2014 @10:56AM (#47918085)
    And that never works well for some reason. Why would anyone think region restriction would be a thing to try now?
  • THIS [netflix.com] is a streaming service.

  • ...Quickflix told Netflix to stop this practice, so Australian viewers will be forced to return to Quickflix and other local alternatives.

    Fixed that for them.

  • credit card billing address checks it already runs

    What checks are those? Just the regular payment ones to prevent CC fraud?

    As far as I know, Netflix doesn't particularly actively use the billing address to restrict services to a particular region - they use IPs for that. That's why for any country where Netflix launches a service that differs from the U.S. one (fewer titles, episodes released much later, etc.), you'll find tutorials popping up on how to get yourself a VPN service that has U.S. IP addresse

    • Except Netflix is also bound by stupid rules and regulations. The entertainment industry is set up to milk every last penny they can, so I would assume that the contracts that Netflix has with Hollywood etc. don't allow them to offer all content to all regions even if Netflix wanted to. For Netflix' part, I'm sure the more subscribers they have, the more money they make and the better leverage they have in signing new content. I wouldn't think they'd go any further than absolutely necessary to prevent pa
    • by Drathos ( 1092 )

      The content owners don't let Netflix have the same content everywhere. They have to negotiate whole new licenses for each country they want to serve.

      They're allowing the VPN users because, to Netflix, it looks like it's coming from a valid IP in the US. That's the whole point of the consumers using the VPN services - to trick the geolocation check that Netflix has.

      • They're allowing the VPN users because, to Netflix, it looks like it's coming from a valid IP in the US.

        That was the whole point of my comment, though - the summary suggested that there's already checks on the billing address, when in fact Netflix doesn't much care where the billing address is - they serve up the content portfolio based on the IP address. If they did use the billing address, then that account could log in from whatever IP address they like, and they'd still get the content licensed for th

  • Bad government (Score:5, Interesting)

    by DMJC ( 682799 ) on Tuesday September 16, 2014 @01:11PM (#47919721)
    This is all because in the 1990s the government allowed FOXTEL to goto the USA, and buy up exclusive licenses to all new and back catalogues from every major media company in America. They spent billions on it and at the time everyone thought they were overpaying.Turns out they very smartly bought themselves a monopoly position in media, one that has effectively locked out all Australian competitors (All the local media services are shit, from the PSN movies, to Xbox Live, to Quickflix.) and the government hasn't had the balls to call them out and break them up for it.
  • Quickflix sucks (Score:5, Interesting)

    by GreatDrok ( 684119 ) on Tuesday September 16, 2014 @03:15PM (#47921089) Journal

    There are a few similar services starting up down here. I had a look at Quickflix because they have a client for my smartTV and TiVo but all they have to offer are old BBC shows which I already own on DVD and their movie selection is woeful even compared with what we can get on AppleTV. Worse, the compression is too high so what they do have looks terrible. If they had the vast array of stuff that Netflix has then they might have a chance but without it they're going nowhere. I don't subscribe to Netflix as I've taken the approach of buying or renting what I want to see but if it was legitimately offered here I would be interested.

  • When Netflix eventually deems fit to grace us with it's presence, it's offerings are going to be nowhere near the same as the US version. It's doubtful if it'll be the same price as well. They might crack down on VPN users to force them to move to the Australian version.

    Netflix could play cat-and-mouse and block known VPN IPs until customers simply give up (and probably torrent the shows they want).

    Most Aussies use the same couple of VPN services, they could easily fatigue the vast majority of illegi
  • If you can't beat them, outlaw them

    There's really not much to see here [quickflix.com.au] if you exclude the "Premium" titles. It's a bit how lefties want to make people use public transportation: not by improving public transportation (increasing quality of life), but by making the car less attractive (decreasing overall quality of life). Quickflix CAN be a one or two bucks per month more expensive... but have 90% of what Netflix US has, and add to that a bunch of quality Aussie content, and they'll blow Netflix out of the w

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