How Netflix has shaped (and shattered) our content landscape over the past decade – and what comes next

To mark 10 years since Netflix began operating in Australia, we and our colleagues at the Streaming Industries and Genres Network have published a report that looks at the state of Australia’s streaming industry today – and back at the platforms that have failed over the years.

It once seemed like Netflix was the be-all and end-all of streaming in Australia. But a decade of competition with other streamers, and stress on local content, paint a very different picture.

The streaming wars rage on

Australia’s “streaming wars” kicked off in early 2015 with the arrival of Stan and Netflix, joining smaller players already on the scene. At the time, some industry insiders predicted the new streaming video-on-demand services would quickly consolidate – that there was room for only two major players: Netflix and one other.

These early assumptions were proven wrong. Instead, Australia has sustained numerous streamers of different sizes, audiences and ownership. The larger, more generalist services such as Netflix, Prime Video and Disney+ compete directly with each other for exclusive content.

Other niche genre players such as Shudder (horror) and Hayu (reality TV) have managed to stay afloat by catering to a specific audience segment and keeping their prices low.

There have also been a few fatalities along the way. Quickflix and Presto were early to the market. Both services had gained considerable ground by 2014, with Quicklix leading the way. But they were eventually viewed as sluggish and limited in comparison to Netflix.

Netflix always on top

Netflix has always been the most popular streaming service in Australia. One million users had access to the platform within just three months of its arrival in 2015.

In 2020, analytics firm Ampere Analysis identified Australia as the most highly-penetrated Netflix market in the world, then available in 63% of Australian homes, compared to 50% in the United States.

In the first half of 2024, it was used by 67% of Australian adults, including some 800,000 people with an ad-tier subscription.

The global behemoth has produced some notable local titles.

In January of last year, the series adaptation of Boy Swallows Universe became Netflix’s most successful Australian-made show in its first two weeks on the platform.

Later in April, the second season of the Heartbreak High reboot debuted at number one in Australia and stayed on the Global Top 10 English TV Series list for three consecutive weeks.

Read more: Streaming, surveillance and the power of suggestion: the hidden cost of 10 years of Netflix

Collectively, Netflix, Prime Video, Disney+, Paramount+ and Stan spent A$225.2 million on 55 commissioned or co-commissioned Australian programs in the 2023–24 financial year.

That said, their commitment to the local production sector over the last decade has been limited, as they have no obligation to invest in local content.

A lack of regulation decimates local genres

The lack of streaming regulation in Australia, alongside the gradual watering-down of commercial broadcaster obligations, has resulted in the collapse of investment in local content.

Children’s TV, documentary, drama TV programming and Australian film have all suffered as a result.

The introduction of multi-national streamers has radically shifted financing practices in Australia, leaving our production sector in distress.

Last year, we partnered with ACMI to pull together a symposium where streaming industry insiders discussed the deeper implications of streaming on local genres, as well as the opportunities and challenges ahead.

We heard from Andy Barclay, manager of business and legal affairs at Screen Producer Australia, who said the traditional “jigsaw puzzle” of finance planning based on international territories was all but gone in favour of major streamers offering full funding and “a little premium” upfront.

But this comes at a cost, as the streamers then control global distribution and hold a tight grip on viewership data. It also means local production can become beholden to the whims of US business interests. As Barclay explain:

These huge [streaming] companies, their Australian businesses […] we don’t drive their business decisions. It’s what happens over in the United States that drives their business decisions.

Nonetheless, having fresh, cash-rich and risk-taking players in the Australian content market has led to opportunities for some local creators.

As Sam Lingham of Australian comedy group Aunty Donna remarked on the same panel:

Netflix, creatively, were pretty hands-off. We pitched them the show and they were like, ‘yeah, go do that’.

What’s on the horizon?

The streaming sector in Australia is now poised to splinter even further.

Warner Bros Discovery will launch its streaming platform, Max, next week. It will be a real blow to the Foxtel-owned streamer, Binge, which has long touted its exclusive rights to much of the Warner catalogue.

There are also concerns about the access and affordability of sport. This year, a new AFL broadcast agreement with Fox Sports and Channel Seven saw Saturday night games move behind a paywall. People will now need Kayo Sports or Foxtel to watch these games live.

Big streamers have also entered the fray. Back in 2016, Netflix said it had no intention of investing in live sport. But we’re now seeing it and other players such as Prime Video, Apple TV+ and YouTube buy into sports rights around the world.

According to Free TV Chief Executive Bridget Fair

we saw it [in 2023] with Amazon hoovering up the whole of the World Cup cricket and it’s going to keep happening […] people who previously got a lot of stuff for free are going to have to start paying.

Finally, many streamers – Netflix, Binge, Prime Video and Stan – have introduced or announced that they will introduce ad-tier subscriptions. Streamers can expect to see better profit margins on their advertising-supported offerings, compared to the monthly subscription model.

Cheaper, ad-supported subscriptions may prove to be a popular option for viewers stacking multiple subscriptions. Already, 800,000 Australians have signed up to Netflix’s A$7.99 + ads option. But this does make for a disrupted, broadcast-like viewing experience (and one you still have to pay for).

As the last 10 years of streaming in Australia has shown, the future can be hard to predict when it comes to new players entering established markets. One thing seems certain though – Netflix is here to stay.