Mixed response to Netflix’s Singapore debut
Mr Reed Hastings, co-founder and CEO of Netflix, delivers a keynote address at the 2016 CES trade show in Las Vegas, Nevada Jan 6, 2016. Photo: Reuters
SINGAPORE – On-demand Internet television service Netflix made its highly anticipated debut here stoday (Jan 7), with a basic package priced at S$10.98 per month. However, the response from television buffs, including those who already access the United States version of the service through VPN (virtual private network) providers, appeared to be mixed.
“I already have a subscription, so if I’m not going to get any extra perks, and since there’s very little difference in pricing, there are no factors for me to consider switching to the Singapore provider,” said communications manager Ho Shu Fen.
Another Netflix viewer, who declined to be named, said: “I already have a US Netflix account that I access via VPN. Since that will still have a better library, I don’t think I will switch anytime soon.”
However, he added: “I still am happy with this move because it will lead to more services coming in.”
On the other hand, local musician Sezairi was one who signed up for the Singapore service despite already having a US subscription.
“I am just really excited that now, I can download the app on my mobile devices,” he said.
“Media streaming is the future, and it’s here now. Hulu, Netflix, Toggle, Spotify — it’s the way to go,” he added.
Netflix declined to reveal how many Singapore subscribers it has so far, but said that its service meets a need here.
“Consumers increasingly are seeking on-demand solutions and Netflix is allowing them to watch what they want, when they want, on almost any enabled device,” a Netflix spokesperson said.
“Given the consumer demand in Singapore for great content delivered over the Internet, we wanted to start meeting that need.”
Still, there are several factors, such as media regulation rules and distribution rights, that will affect how quickly Netflix takes off here, said analyst Matt Pollins, a media lawyer at Olswang Asia.
For example, Netflix said R21+ content, the highest rating category, will be hidden behind a PIN number.
“Regulation is one question. I think equally, if not more important, is the question of rights,” said Mr Pollins. “Netflix doesn’t yet have the global rights to all of its content, so it can’t launch all content everywhere. The reason that Netflix is making more of its own content is so that it can offer it in more markets.”
How Netflix works to localise its content will also be a variable in its growth, Mr Pollins said, especially with other on-demand Internet TV providers already in the region.
“It needs to make sure that what it offers appeals to the local audience. That means having local language offerings, but also having the right mix of content that appeals to viewers in each market.
“Let’s not forget they are up against a growing range of local competitors,” he said.
“There’s Hooq and iflix, and then there are the local offerings from the more established players such as StarHub Go, for example, which is a subscription service.”
Although there is a well-connected young population of Internet users here for whom online viewing is the main way of viewing TV content, Mr Pollins said demand for traditional pay-TV packages will remain.
“People still like watching linear television,” he added.
