Netflix Expansion Worries Some, Welcomed By Others
BMI View: The potential for Netflix's European expansion initiative to disrupt the region's traditional pay-TV business models is well-recognised. Broadcasters and pay-TV providers are responding with their own streaming services - the latest reportedly emerging in Austria. However, success is not guaranteed and players should collaborate with the US giant, as Deutsche Telekom seems set to do.
Kurier reports that ?sterreichischer Rundfunk (ORF), Austria's national public service broadcaster, will acquire video-on-demand (VoD) operator Flimmit in order to develop a commercial video streaming service. Like many of its peers, ORF has been losing audiences to cable- and satellite-only channels as well as IPTV services and, now that it is facing additional competition from Netflix, it is understandably keen to develop a rival service of its own.
Flimmit currently offers rental-only and download-to-own access to more than 2000 Austrian movies, series and documentaries. We expect ORF to move Flimmit to a more sustainable subscription-based model, focused on flat monthly fees, and to make a significant quantity of archive and future content available via the platform.
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