Netflix has arrived in Australia. Are their competitors worried? Not really. Stephen Langsford, the CEO of Quickflix, says their presence will help to grow the market. Perhaps it’s the ISPs who should be most concerned. As John Lindsay points out, too many customers streaming 4Mbps content will cost a lot, particularly if NBNCo was to continue charging $17.50 per Mbps (the CVC charge) for connectivity to its access network.
As demand increases CVC costs will come down, but will they fall enough to cater for more and more households streaming content at the same time? Doesn’t it mean ISPs will need to increase their costs. If that’s the case, doesn’t it also mean you’ll be paying for Netflix, even if you don’t subscribe to it?