It’s hard to imagine a time without Netflix, even though the service has only been available in Australia since 2015. Continuing to hold the largest number of subscribers for any streaming service Down Under, Netflix has, for the first time in eight years, seen a drop in those numbers. It now has a total of 6.1 million after a loss of 189,000.
Growth has slowed across all the top streaming services available locally, but the Telsyte Australian Subscription Entertainment Study 2023 found Netflix to the only platform to lose subscribers in Australia in the past 12 months. Perhaps unsurprisingly, the majority of the decline can be attributed to the streaming giant's password sharing crackdown introduced earlier in 2023. This is despite a global rise in subscriptions that was recorded in July.
Conversely, Paramount Plus and Binge saw the most growth this year, with subscriber numbers increasing by 41% and 22% respectively. Amazon Prime Video, Disney Plus, Stan and Kayo Sports also saw additional subscribers of between 1% to 9%.
Bleeding numbers but plenty in the bank
As we’ve just mentioned, despite the loss in Aussie subscribers, Netflix is still seeing growth globally. So clearly Aussies aren’t happy with the password crackdown that came into effect in May 2023. And that’s fair, particularly with the cost-of-living crunch making it hard for most families to prioritise more important expenses.
If Netflix starts bleeding subscribers in other markets, then there’s going to be cause for concern as it’s the money that goes into funding Netflix original productions. Still, the popular streaming platform should have plenty in the bank to carry on without breaking a sweat for now.
That said, Netflix has previously proven that it won’t hesitate to cancel shows that don’t gain worthy reception from audiences. Already facing issues due to the ongoing writers strike in Hollywood, Netflix has pushed back some of its top shows including Cobra Kai and Stranger Things. There’s still content hitting the platform, including some home-grown Aussie shows such as The Survivors and Love is in the Air coming in the next few months, as well as a new season of Heartbreak High, but if these shows are getting fewer eyes, they could sink like 1899.
Meanwhile, it’s not surprising to see Binge numbers climb. The home of HBO shows in Australia, there’s a lot of quality content to, well, binge on the homegrown platform. Amazon Prime too continues to lead the pack with the total number of subscriptions, like it did back in May. Offering a variety of services under one payment, including shopping and gaming as well as original shows and movies. Prime is inching close to Netflix’s subscriber count by offering more value for money and, as such, is able to offer high-quality content on Prime Video.
Is Netflix still worth it in Australia?
Subscription Video on Demand (SVOD) services are still in the firing line when Aussie families have to cut costs, though the Telsyte study found that households are prioritising streaming services over other expenses such as takeout, clothing, holidays, alcohol and electronics. It’s clear that Aussies want to keep their streaming subscriptions, and with more affordable options and no-lock in contracts on the table, households could continue to pay for Netflix alongside other costs.
Introducing an ad-supported tier has already shown to be beneficial for both Netflix and Binge, with a combined total of over one million subscribers since it first arrived on the former. Netflix’s ad-supported tier is one of the most affordable SVOD subscriptions in Australia, costing only AU$6.99 per month. Whereas Binge simply popped ads and an HD stream onto its Basic subscription, which already cost AU$10 per month, and that’s the lowest price you’ll pay for HBO content.
To soften the blow of its password-sharing crackdown, Netflix is now allowing subscribers on its AU$16.99 a month Standard Plan to add additional members within a single household, but that costs AU$7.99 per month for each member you want to add to your family-sharing plan.
That pushes the yearly cost for Netflix up to AU$299 a year, which, when compared to a Disney Plus subscription of AU$139 per year or a Prime Video subscription at AU$79 per year, is a very hefty fee. Neither Disney Plus or Prime Video currently have an aggressively enforced password sharing lockdown measure, but Disney has suggested it’ll be looking to crack down on passwords in the next few years.
Whether Netflix is still worth forking out for will depend entirely on what TV shows and movies you’re really keen on watching. There are some excellent shows to watch on Netflix – The Witcher continues to prove its popularity into season 3 and The Lincoln Lawyer is still smashing it in its second season. However, there’s plenty more great content on Binge, Prime Video and Disney Plus, so it’s no surprise that some Aussies no longer find Netflix worth their hard-earned cash. Though with Netflix expanding into gaming inclusions and testing different ways to add games to TVs, PCs or Macs, it remains to be seen if it helps to rebound.
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