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Quickflix Wants Netflix To Drop Australian VPN Users

ashshy writes 200,000 Australian residents reportedly use Netflix today, tunneling their video traffic to the US, UK, and other Netflix markets via VPN connections. A proper Netflix Down Under service isn't expected to launch until 2015. Last week, Aussie video streaming company Quickflix told Netflix to stop this practice, so Australian viewers can return to Quickflix and other local alternatives. But Quickflix CEO Stephen Langsford didn't explain how Netflix could restrict Australian VPN users, beyond the IP geolocating and credit card billing address checks it already runs. Today, ZDNet's Josh Taylor ripped into the absurdity of Quickflix's demands. From the article: "If Netflix cuts those people off, they're going to know that it was at the behest of Foxtel and Quickflix, and would likely boycott those services instead of flocking to them. If nothing else, it would encourage those who have tried to do the right thing by subscribing and paying for content on Netflix to return to copyright infringement."

121 of 172 comments (clear)

  1. WAAAHHHH!!! by Anonymous Coward · · Score: 1

    Waaaah! We're getting our arses kicked! Make the bad Netflix stop, mummy!

    Sounds like a case of tall poppy envy to me.

    1. Re:WAAAHHHH!!! by tc3driver · · Score: 1

      MMMMMMMMMMM

      Delicious Tears!

      --
      42 69 6C 6C 20 47 61 74 65 73 20 69 73 20 61 20 77 68 6F 72 65 21
    2. Re:WAAAHHHH!!! by Dogtanian · · Score: 1

      Sounds like a case of tall poppy envy to me.

      Sounds like a badly mixed metaphor to me- tall poppy syndrome- which I assume is what you had in mind- tends to have a more specific use referring to people attacked for their achievements or prominence by their peers within a particular society, and I'm not sure this is a good example of that.

      --
      "Slashdot - News and Chat Sites Deviant". (Click "homepage" link above for details).
    3. Re:WAAAHHHH!!! by lgw · · Score: 1

      I think the plant metaphor he was looking for was: "and the Maples formed a union, and demanded equal rights; the Oaks are just too lofty, we will make them give us light". Not a story that ended well.

      I'm ashamed to admit it took me 20 years to make the connection between "Maples" and "Canadian band".

      --
      Socialism: a lie told by totalitarians and believed by fools.
    4. Re:WAAAHHHH!!! by crafty.munchkin · · Score: 2

      It gets better. Foxtel (the major rights holder for TV content in Australia) wants people to have their internet connections cut off if they pirate TV shows, whilst charging $150 a month for cable TV in HD. There's no legal way to access shows like Game of Thrones in Australia via streaming, the cheapest possible way to watch it as it airs overseas is with a "Foxtel-Play" subscription for $35/month for the 3 months. And then Foxtel and Village Roadshow and Quickflix all cry about piracy, because people don't want to pay a 400% markup for TV content. Netflix and a VPN service is costing me $15/month for five times the content I can get from Foxtel for $150/month

      --
      ... wait, what?
  2. International Copyright by MobyDisk · · Score: 1

    Why is Netflix not available in Australia?

    1. Re:International Copyright by spire3661 · · Score: 2, Interesting

      Same reason Blizzard never put servers there. The Australian Telcos have the continent by the balls, no one wants to do business there.

      --
      Good-bye
    2. Re:International Copyright by skirmish666 · · Score: 2

      Why is Netflix not available in Australia?

      A combination of licencing arrangements with existing distributors and the fact that the market size makes for a not so attractive business opportunity.

      --
      Sigger than your average
    3. Re:International Copyright by MobyDisk · · Score: 1

      This is what I always here, same with Anime. But I don't understand why this is hard. Why would the rights be harder to secure in Australia versus anywhere else in the world? Why would a content provider care about geography? Isn't money made from streaming to someone in Australia the same as money made from streaming to someone in the US? When Walmart wants to sell Proctor and Gamble shampoo in the US, Proctor and Gamble profits. Why would P&G not want Walmart to sell shampoo in Australia? Or the Mars or the Moon? Is streaming somehow different?

    4. Re:International Copyright by MobyDisk · · Score: 1

      "Licensing issues" seems to be the standard reply. But, why would licensing in Australia be different from licensing elsewhere? Isn't a show streamed to Australia is just as profitable as a show streamed to Europe or America?

    5. Re:International Copyright by ashshy · · Score: 4, Informative

      "Licensing issues" seems to be the standard reply. But, why would licensing in Australia be different from licensing elsewhere? Isn't a show streamed to Australia is just as profitable as a show streamed to Europe or America?

      Yes, but Netflix must sign and *pay for* a license in each separate territory. The company pays per show/movie, per market, per year (or whatever licensing timeframe), and it doesn't make sense to roll out an actual service until you have the rights to a decent content library in that new territory.

      Netflix is working on licenses for Australia, but doesn't have a service yet. And whatever agreements it did sign so far likely don't become active until Launch Date X.

      So as usual, it all boils down to costs. Follow the money.

      --
      #o#
      O Moo.
    6. Re:International Copyright by gstoddart · · Score: 2

      But, why would licensing in Australia be different from licensing elsewhere?

      Best guess: the content creators use it as a way to extort more money out of people.

      Why go for "just as profitable" when you can have "more profitable". If we can't get more profit, we're not licensing it to you.

      The companies who own the content and are in charge of licensing see people as nothing more than a revenue stream, and want to be able to control what you see so it's on their terms.

      In other words, greedy assholes.

      There's no technical reason I can imagine, which means it's all about money.

      Same as the region codes in DVDs, because heaven forbid you be able to buy a movie in another country and watch it at home. Because that could disrupt corporate profits and executive bonuses.

      --
      Lost at C:>. Found at C.
    7. Re:International Copyright by skirmish666 · · Score: 1

      "Licensing issues" seems to be the standard reply. But, why would licensing in Australia be different from licensing elsewhere? Isn't a show streamed to Australia is just as profitable as a show streamed to Europe or America?

      It isn't necessarily less profitable per capita. The licencing issue is that existing distributors have contracts with overseas production firms preventing other distributors from supplying the same material.
      The situation isn't completely different in the USA - if you look at the selection of TV shows available to US Netflix subscribers compared to what's available to Latin American Netflix subscribers there's a surprisingly larger selection for Latin America.

      --
      Sigger than your average
    8. Re:International Copyright by ArcadeMan · · Score: 5, Funny

      It would take too much resources to re-encode all the movies upside-down.

    9. Re:International Copyright by kthreadd · · Score: 2

      According to TFS Quickflix apparently wants to.

    10. Re:International Copyright by petermgreen · · Score: 1

      Because generally the rightsholders sign exclusive contracts with a company in each "market" (usually either a single country or a small group of countries). The result is netflix can't just go to the original creator of the content and buy a worldwide license, they have to buy licenses for each "market" from whoever controls the rights in that market.

      So if netflix want's to enter a new market (e.g. australia) they have to start their negotiations for content largely from scratch (there may be some indie content that they got a worldwide license for but they are highly unlikely to get that for the big name stuff). That takes time and may not result in as good a deal as they got in their primary US market (see complaints from canadian and european netflix users about how the library sucks compared to the US one).

      Now netflix have to make some attempt to keep people from other countries out to satisfy their contracts with those they bought the rights from. The question is how far do they have to go, is using a standard geolocation service suficiant or do they have to go beyond that and put in place further measures to make evading the block more difficult.

      --
      note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
    11. Re:International Copyright by gstoddart · · Score: 4, Insightful

      This is what I always here, same with Anime. But I don't understand why this is hard.

      It's not hard from a technology perspective, and it never has been.

      It's hard from a "these corporations are greedy bastards" perspective. They want to maximize profits. Pure and simple.

      If that means telling the consumer "no, you can't have our product until we can figure out how to sell it to you for more money", they're OK with that.

      You don't need to look beyond money, because technology isn't the roadblock here.

      --
      Lost at C:>. Found at C.
    12. Re:International Copyright by tepples · · Score: 4, Informative

      Why would a content provider care about geography?

      Mostly decades-long exclusive distribution contracts that predate the Internet.

    13. Re:International Copyright by suutar · · Score: 5, Informative

      Quickflix's biggest shareholder is an Nine Entertainment, which appears to be their ticketmaster and clearchannel equivalent. They don't appear to be a telco but they do seem likely to be in bed with them.

    14. Re:International Copyright by king+neckbeard · · Score: 1

      Not sure about why, but some countries, including Japan and Australia, get extremely price gouged in regards to CDs (although they often have bonus tracks to dissuade imports), and I wouldn't be surprised if there was a similar situation for film and TV. Giving them something close to American prices would cut into their profits.

      --
      This is my signature. There are many like it, but this one is mine.
    15. Re: International Copyright by Anonymous Coward · · Score: 1

      Most Aussies have screens that rotate mate.

    16. Re:International Copyright by petermgreen · · Score: 5, Informative

      TV networks in various countries buy exclusive rights to distribute the program in thier country (or sometimes a group of countries, for example EU regs mean you can't really limit a license to an individual country in the EU).

      The primary rightsholder can't sell rights to distribute the program worldwide to netflix because they have already sold exclusive rights to distribute it in particular countries to various TV networks.

      So getting rights to show programs in australia requires a totally new set of negotiations with totally different parties to getting rights to show those same shows in the US.

      --
      note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
    17. Re:International Copyright by MobyDisk · · Score: 1

      "Those greedy bastards" don't make money by refusing to license their products. There must be some real concrete reason.

    18. Re:International Copyright by MobyDisk · · Score: 1

      Thank you. That is the first actual substantive answer I've had on this topic. Every other reply is "because licensing" or "because greed."

    19. Re:International Copyright by MobyDisk · · Score: 1

      I get that Netflix won't launch in Australia without licenses. So why don't they have licenses? Why can't they get them?

      The only substantive answer I've heard so far is that the companies sold decades-long *exclusive* licenses to someone else. That might tie into your statement "And whatever agreements it did sign so far likely don't become active until Launch Date X." So the implication is that they *can* get licenses, but they won't kick-in until someone else's exclusive license expires? And why was this different in Australia?

    20. Re:International Copyright by MobyDisk · · Score: 3, Insightful

      I keep hearing "greed" but that is a copout. Greedy people do not refuse to license their products for decades.

    21. Re:International Copyright by westlake · · Score: 1

      Why is Netflix not available in Australia?

      The population of Australia is 24 million. The population of metropolitan New York City, 20 to 24 million, depending on how you choose to define it. If you want a presence in the Asian-Pacific market, Australia doesn't loom large in your thinking.

    22. Re:International Copyright by MobyDisk · · Score: 1

      Interesting. So maybe they don't want Netflix to cut into DVD sales if DVD sales are more profitable in Australia than they are in the US. That would be a valid reason.

    23. Re:International Copyright by OhPlz · · Score: 1

      If the return on investment doesn't exceed the cost of setting up the licensing and distribution rights, it won't happen. Even then, it has to exceed costs by a high enough amount, otherwise the entities involved will focus their efforts on something else that's more lucrative. But they're not going to just let people access the content, because it might become profitable enough at some point.

      To me, this is the biggest disappointment of the Internet. If I want to watch the local news in some other part of the country, why can't I? If I want to purchase music from iTunes France, why can't? If I want to buy a product from Amazon Japan, why can't I? Same thing with DVD and BluRay and their ridiculous region scheme. We've made it a lot easier to access goods and entertainment from a person's own country or continent, but it doesn't stretch much further than that in many cases.

      The "global economy" isn't there at the consumer level.

    24. Re:International Copyright by jedidiah · · Score: 1

      I think Australia just isn't big enough. It doesn't represent enough money or enough people. It's small enough that the gatekeepers might not give a damn. Screwing over the whole continent is not that big of a loss for them.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    25. Re:International Copyright by gstoddart · · Score: 1

      I often wonder if it's not a "why make $30 million now when we might be able to make $300 million later" kind of deal.

      By committing to a licensing deal now, they're stuck with it.

      But I've definitely heard many Aussie's lamenting that you pay much more for the same thing there than you do here, and the corporations we're talking about really don't do anything unless it's maximizing profits.

      So, if it's a company like Sony who is refusing to license the content ... then I can only assume it isn't, and never has been, technology which is the barrier.

      Because I doubt the Australian packets drive on the wrong side of the intertubes and create a safety hazard. ;-)

      At which point "licensing" comes down to: national regulations prevent you from doing it, or unwillingness to do it for whatever reason -- which to me comes down to profit, or creating artificial scarcity (again, for profit), or because at some point you want to have your own service and don't want to cannibalize it (again, profit).

      Essentially it's a business decision.

      But the technology of streaming a video over the interweb? That's not what stops this.

      --
      Lost at C:>. Found at C.
    26. Re:International Copyright by suutar · · Score: 1

      They can get them, usually. It just takes time and money to negotiate for them. Eventually they'll have enough and then they can open up service.

    27. Re:International Copyright by X0563511 · · Score: 1

      You realize the distillation of that answer is the same? Licensing and greed.

      Licensing is the direct cause, but greed is the reason there were exclusivity agreements to begin with.

      --
      For large sets, this will be our guide even unto death, for the LORD will work for each type of data it is applied to...
    28. Re:International Copyright by Pope · · Score: 1

      It's re-rendering the toilets to flush the other way that'll cost more!

      --
      It doesn't mean much now, it's built for the future.
    29. Re: International Copyright by Cyrano+de+Maniac · · Score: 1

      Most Aussies have screens that rotate mate.

      Clockwise, or anti-clockwise?

      --
      Cyrano de Maniac
    30. Re:International Copyright by Pope · · Score: 1

      This is what I always here, same with Anime. But I don't understand why this is hard.

      Anime is a whole other matter. Japanese media companies are insanely risk-averse. If they know they can guarantee a sell-out run of 20,000 BD units at 6,000 Yen a piece for Anime X in Japan only, that's all they'll do. Won't run 25,000 units and hope for selling 23,000 at full retail.

      Keeping with this, they also charge an arm and a leg to foreign companies to want to translate and distribute outside Japan. Since media costs are lower in, say, the USA, they worry that Japanese fans will wait until the cheaper foreign discs come out, since they'll all have the Japanese language tracks anyway.

      Everything else you mention has to do with pre-existing agreements.

      --
      It doesn't mean much now, it's built for the future.
    31. Re:International Copyright by whoever57 · · Score: 4, Insightful

      I keep hearing "greed" but that is a copout. Greedy people do not refuse to license their products for decades.

      They do if they believe that the new channel will cannibalize their existing channels (DVDs) and produce lower net revenue.

      --
      The real "Libtards" are the Libertarians!
    32. Re:International Copyright by tepples · · Score: 1

      Until those obsolete contracts expire, the copyright owner is still bound by law to honor them.

    33. Re:International Copyright by rogoshen1 · · Score: 1

      Considering they're a pretty high income country, with tastes similar to the rest of the 'Dominion', it doesn't make sense at all.

      But, what's the peering arrangement that Netflix would need to operate in Australia? Would it be something they could afford to do realistically?

    34. Re:International Copyright by MobyDisk · · Score: 2

      I wasn't looking for a distilled answer. I really wanted to know what specifically is the problem. If the licenses are locked-up by exclusive agreements with existing broadcasters, then I can understand the problem. Netflix might only be able to solve that by buying out the broadcasters. I wonder if the broadcasters could let the content providers break the contract, in exchange for some agreement. Or if they can sub-license the rights back to Netflix, and profit as a middleman.

      Q: Why does this code not work?
      Distilled answer: Bad programming.
      Answer I wanted: Line 27 doesn't allocate enough memory.

      Q: Why can't I stream The Simpsons?
      Distilled answer: Licensing and greed.
      Answer I wanted: Viacom has an exclusive licensing agreement that expires on March 21, 2018

    35. Re:International Copyright by MobyDisk · · Score: 1

      Pope: Thank you for a detailed answer. I'm tired of stupid responses like "xenophobia and stupidity." I expected some AC responses like that, but the registered users doing it is quite maddening.

    36. Re:International Copyright by MobyDisk · · Score: 1

      If the return on investment doesn't exceed the cost of setting up the licensing and distribution rights, it won't happen.

      That part seems logical. But I am amazed that "licensing and distribution" would be so expensive that it would exceed the value of millions of people viewing their content. That sounds like the companies are becoming inefficient. Their own internal paperwork is so complex and expensive that they can't deploy their own product. Ouch, that's really wacky.

      Even then, it has to exceed costs by a high enough amount, otherwise the entities involved will focus their efforts on something else that's more lucrative

      I get that. I work for a company that decided to can a perfectly functioning and completed product because the regulatory requirements for a particular region cost $10 million. Now, they know it would make more than $10 million, but they only had $10 million to spend in that fiscal year. So they spent it on a product that would make more. To all the people on that project, it seems like a really weird decision. But you only have so much working capital.

      I echo your sentiment about the "global economy." By default, a licensing agreement should apply universally to all geographies. If I build something on the internet, it is available to everyone by default. I must go out of my way and spend extra money to make it not work for some people based on their location. In this case, the content providers stunted their own sales to the point of creating a black market. (The people using VPN to access Netflix are essentially a black market. Or gray market if you prefer since they aren't doing anything illegal.)

    37. Re:International Copyright by MobyDisk · · Score: 1

      Yeah, that makes sense in a sad way. I suppose the music industry thought the same way for a while. Eventually, illegal music distribution services convinced them otherwise. Now, VPN connections are the equivalent for streaming video.

    38. Re:International Copyright by Hamsterdan · · Score: 1

      Netflix is available in Canada, and we're 35 million, not much more than Australia.

      Installing their CDNs in Australia should cost about the same as anywhere else.

      So it's probably license related (or should I say license retarded)

      --
      I've got better things to do tonight than die.
    39. Re:International Copyright by Firethorn · · Score: 2

      They can normally license with the holder of the exclusive rights, but in many cases said holder sees netflix as competition and thus wants to charge huge rates for said licenses. That's where time to conduct negotiations comes in. It doesn't make sense for netflix to sign a licensing agreement where the cost is $12/month per netflix customer, after all. Even $1 a customer per year gets quite dear.

      --
      I don't read AC A human right
    40. Re:International Copyright by Firethorn · · Score: 1

      Which is part of the 'problem' Australians experience - their local companies have enough influence to pass standards at least somewhat unique to Australia, as well as have some of the tougher media controls, yet they're not big enough for most companies to put forth the effort to comply with them, which leaves them lagging.

      --
      I don't read AC A human right
    41. Re:International Copyright by skirmish666 · · Score: 1

      I wonder if the broadcasters could let the content providers break the contract, in exchange for some agreement. Or if they can sub-license the rights back to Netflix, and profit as a middleman.

      It would need to be a profitable arrangement for all involved; these are publicly listed companies and they're legally required to act in the best interest of their shareholders.
      With a three way split on profits (middleman situation) it's unlikely that it would be possible for all three organizations to get the best deal for their shareholders: someone is going to be paying more or selling for less than they ideally would like to.
      In order to sell the rights the seller would have sell them at greater than the profit forecasted to be returned by their ownership of those rights which would be unlikely to provide any value to the purchaser, meaning that they wouldn't be acting in the best interest of their shareholders.
      Both of these would also need to be expressly permitted by the content provider as well, adding another layer of legal expenses.
      /my 2c

      --
      Sigger than your average
    42. Re:International Copyright by __Paul__ · · Score: 2

      That reason is Foxtel. It buys up the rights to everything at hugely inflated prices, and then charges an arm and a leg for consumers to get it.

      Want Games of Thrones as it's released? Foxtel is the only legal game in town.

      --
      worldmobilenet.com -- World Prepaid Wireless Internet plans
    43. Re:International Copyright by Zxern · · Score: 1

      For the same reason source code for old dead games never get released. It might be worth more in the future sometime. They might want to setup their own streaming service someday in the future so why sell the rights and miss out on the potential profits.

    44. Re:International Copyright by skirmish666 · · Score: 1

      Shareholder value is not explicitly the licencing problem, there are exclusivity issues as well.
      The point I was highlighting in regards to the theoretical put forward is that they won't (can't) if there's an option that adds more value to their organization.

      --
      Sigger than your average
    45. Re: International Copyright by ben_kelley · · Score: 1

      Nine Entertainment is a TV network. Make sense?

    46. Re:International Copyright by able1234au · · Score: 1

      such as by effectively killing the NBN which would provide a high speed network allowing people to stream TV, movies etc in 4K, thereby rendering Foxtel unneeded.

    47. Re:International Copyright by able1234au · · Score: 1

      I think it is distribution rights, copyright rights. Netflix would have to pay the right entities so you could watch that movie

    48. Re:International Copyright by crafty.munchkin · · Score: 1

      I guess it boils down to what you think is a reasonable markup on something. $1 AUD buys $0.90 USD currently. So what do you think a reasonable markup on something would be? 20%? 50%? How about 400%? Because that's what they expect us to pay, and then they call us pirates when we choose to seek alternate methods to access Netflix!!! FWIW - News Corpse owns The Australian newspaper, and owns half of Foxtel, the monopoly payTV provider in Australia.

      --
      ... wait, what?
    49. Re:International Copyright by dbIII · · Score: 2

      They don't appear to be a telco but they do seem likely to be in bed with them.

      There's some Murdoch ownership there, via Sky, owned mainly by Mordoch like Foxtel is. Whether the link is enough to set policy is a bit of a guess but Rupert has a habit of taking a very active interest in anything he owns a part of and tends to have influence far beyond his level of ownership in some things.

    50. Re:International Copyright by mjwx · · Score: 1

      Quickflix's biggest shareholder is an Nine Entertainment, which appears to be their ticketmaster and clearchannel equivalent. They don't appear to be a telco but they do seem likely to be in bed with them.

      Nine Entertainment is closer to Time Warner than Ticketmaster. Ticketmaster is our Ticketmaster.

      Also Nine Entertainment is going broke.

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
    51. Re:International Copyright by dbIII · · Score: 1

      That part seems logical. But I am amazed that "licensing and distribution" would be so expensive

      It isn't, but that's the excuse. A few years back it was shown in a Mac laptop review that it would be cheaper to fly from Sydney to Hawaii for a five day holiday and buy the laptop over there than to buy it in Sydney. That's an extreme, but there are many items sold at inflated prices with flimsy excuses, especially when you still have to pay a markup for a download edition of some software just because of the region you are in.

    52. Re:International Copyright by mjwx · · Score: 1

      I keep hearing "greed" but that is a copout. Greedy people do not refuse to license their products for decades.

      Its not the license sellers that are greedy here, its the companies who bought the licenses that are greedy. Companies like Nine and Foxtel in Australia paid for an exclusive license and will hold the licenser to that agreement. Foxtel especially hates competition, they are presently scrotum deep in trying to get ISP's in Australia to start policing users for them (ISP's are blocking this at every turn).

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
    53. Re:International Copyright by dbIII · · Score: 1

      OK then - greed combined with political and market power. It's about protecting the profits of Rupert Murdoch's Foxtel which is the only game in town - everything else is being kept out.

    54. Re:International Copyright by rtb61 · · Score: 1

      It's called monopoly activity. Someone gets in early and buys up all control because they believe they will be able to charge more than the rest of market by establishing a monopoly. With regard to copyright this also ties into killing the distribution of independent content by turning broadband into overpriced strangle band to make it too expensive for them to digitally distribute content. Now tie this into corruption of government and corrupt three strikes laws disconnected from the net and threats of criminal penalties for minors infringing copyright. So management by psychopaths and unlimited greed.

      So this gives you Foxtel, News Corporation, Rupert Murdoch and his dog Tony Abbott and the crippling of Australia's digital future to feed one asshats insane drive for profits and power as well as his corrupt pathetic political minions.

      --
      Chaos - everything, everywhere, everywhen
    55. Re:International Copyright by deniable · · Score: 1

      More likely it was Adobe products. Cheaper to fly to LA, buy a copy and fly back than buy it locally.

    56. Re:International Copyright by dryeo · · Score: 1

      Its been claimed (I didn't actually check but from a reputable source) that it's cheaper for me to buy a built in Canada car by driving south 30 miles to the closest American airport, fly to Hawaii, purchase the manufactured in Canada car and ship it back including doing the paper work and paying the duty and taxes.
      On the other hand yesterday the CBC radio show Q had an interview with whats his name from the daily show and they had to geopolitically block it to only stream from youtube and cbc.ca to Canada. Today Americans outraged as they'd never been geopolliically been blocked before and Canadians smirking with the "see how it feels attitude"

      --
      https://en.wikipedia.org/wiki/Inverted_totalitarianism
    57. Re: International Copyright by Namarrgon · · Score: 1

      Australian here. See above; QuickFlix has to pay for the AU regional licenses for whatever paltry content the owners are willing to spare, while Netflix only pays for the US license (cheaper per view & much more content) but collects a *lot* of AU viewers too.

      Hard to blame QuickFlix for feeling bitter, but it's the content owners that created the situation with the huge discrepancies between their region licenses.

      --
      Why would anyone engrave "Elbereth"?
    58. Re:International Copyright by uninformedLuddite · · Score: 1

      >

      But I've definitely heard many Aussie's lamenting that you pay much more for the same thing there than you do here.

      You mean like a packet of cigarettes for $25 sort of more?

      --
      The new right fascists are bilingual. They speak English and Bullshit.
    59. Re:International Copyright by suutar · · Score: 1

      Thank you for checking on that. I was basing my statement on wikipedia, which is obviously outdated at best.

    60. Re:International Copyright by TranquilVoid · · Score: 1

      Licensing is the direct cause, but greed is the reason there were exclusivity agreements to begin with.

      I disagree. Networks seek exclusivity agreements to reduce risk, it's standard business practice for large companies. Without there's a chance their investment will be suddenly worthless as another network shows the same content, so they pay a premium for certainty.

      Of course everything in capitalism is greed in some sense, even the salary you as a worker can ask for from your employee. There's a fine line between standard market practices and profiteering.

  3. Meet the new boss, same as the old boss by broknstrngz · · Score: 1

    You'd think that such companies touting themselves as the masters of the new way of doing business would refrain from the very monopolistic manoeuvres they have been criticizing all along. You'd think...

    1. Re:Meet the new boss, same as the old boss by gstoddart · · Score: 2

      Given a chance, I believe any company would seek a monopoly.

      Given the chance to force consumers to use your product, I think the people who run corporations would jump at it.

      But if you think forcing me to subscribe to your product instead of the competitor I was already happy with ... you'd have to be a complete idiot, and I think these people might be.

      This isn't anything other than trying to force people to use your service, even if your service isn't as good or people aren't interested in it. And that doesn't always get a good reaction from people.

      If I was an Australian Netflix users, Quickflix would not be getting any of my business.

      --
      Lost at C:>. Found at C.
  4. Idiots ... by gstoddart · · Score: 4, Insightful

    So they want a competitor to cut off customers which they can't serve (or because they can't compete)?

    If your service is good and it's what people want, you will survive. If it isn't, and people go elsewhere ... too damned bad. If I was dealing with a company, and their competitor made them stop providing me service, there is no way in hell I'd go with the competitor, since they effectively blocked me from getting the service I do want.

    This just sounds like "waah, we can't compete with Netflix, so Netflix needs to stop serving the customers we haven't been able to attract". Screw that. Your "local alternative" may not be as good, and the consumer shouldn't be forced into using your crappy product just because you say so.

    I'd be seriously pissed at Quickflix for being self entitles assholes. And I sure as hell wouldn't do business with them.

    Why do companies feel they are entitled to our business? I'll do business with whomever I want.

    These clowns sound like candidates for the B-ark.

    --
    Lost at C:>. Found at C.
    1. Re:Idiots ... by Anonymous Coward · · Score: 1, Insightful

      sure I agree with you.....apart from Netflix is cheating the system by not licensing content for Australia....while still allowing clients to log in from there.

      my only real comment is QuickFlix obviously don't understand how vpn's work....no way that Netflix can work out where their users are coming from if they use vpn......

    2. Re:Idiots ... by bluefoxlucid · · Score: 1

      Comparative advantage: It's cheaper to import, and the dollars not spent on local product thus are spent elsewhere. Local producers expend more effort than foreign, and so are wasteful in the context of the global economy; as they get no business, they go out of business, and their labor and capital investment for long-term operations are freed up to pursue a different endeavor cheaper done locally than imported.

    3. Re:Idiots ... by stephanruby · · Score: 1

      Unlike yourself, Quickflix has obtained all necessary Australian rights to the content on its platform, faithfully meets all necessary security requirements, including geo-filtering imposed by the content rights holders, and...

      Netflix has geo-filtering in place, hence the need for private VPNs. In fact, if the reverse was true and non-Australians watched Quickflix movies through VPNs, I very much doubt that Quickflix could do anything about it.

      My guess is that Quickflix is just posturing to get better terms on content licensing. 200,000 is an awful big guess estimate. VPNs are not free (the free ones just aren't reliable). I doubt very much that 200,000 people would put down money for a VPN subscription, on top of a Netflix subscription, on top of broadband service. If people are getting VPN subscriptions, it's probably for porn, business, and/or free video streaming services like hulu.com or thedarewall.com

    4. Re:Idiots ... by king+neckbeard · · Score: 1

      And by cheating the system, you mean paying a reasonable licensing fee instead of insane Australian licensing fees. Excuse me for not crying a river of tears that Australians are circumventing ridiculous practices that lead to insane prices.

      --
      This is my signature. There are many like it, but this one is mine.
    5. Re:Idiots ... by Anonymous Coward · · Score: 1

      sure I agree with you.....apart from Netflix is cheating the system by not licensing content for Australia....while still allowing clients to log in from there.

      my only real comment is QuickFlix obviously don't understand how vpn's work....no way that Netflix can work out where their users are coming from if they use vpn......

      So according to you Netflix is undercutting Quickflix by allowing Australian logons, yet at the same time they also have no idea where the logons are coming from since they use VPN?

    6. Re:Idiots ... by pr0fessor · · Score: 1

      Quickflix service and selection must really suck for someone to go through the hassle of getting a foreign bank account and vpn to get what is advertised as roughly the same service for about the same price. I have a netflix account their streaming selection isn't that great, I'd like to see more new movies, although I can't complain about the service it has never been down or slow when I wanted to use it.

    7. Re:Idiots ... by Anubis+IV · · Score: 1

      sure I agree with you.....apart from Netflix is cheating the system by not licensing content for Australia....while still allowing clients to log in from there.

      my only real comment is QuickFlix obviously don't understand how vpn's work....no way that Netflix can work out where their users are coming from if they use vpn......

      My head hurts after reading your comment. Netflix has effectively done the digital equivalent of setting up a blockade around Australia to prevent their goods from entering the country, and yet they're the ones cheating the system because Australians are managing to smuggle the content through the blockade? What sort of sense does that make?

    8. Re:Idiots ... by sribe · · Score: 1

      If your service is good and it's what people want, you will survive. If it isn't, and people go elsewhere ... too damned bad. If I was dealing with a company, and their competitor made them stop providing me service, there is no way in hell I'd go with the competitor, since they effectively blocked me from getting the service I do want.

      True story from small town Colorado: the tiny local cable service wasn't great, somebody with a satellite TV franchise got the bright idea to buy out the cable company and shut it down. And went out of business because no one would sign up for his satellite service after he pulled that stunt. (Didn't help that someone else got a franchise for the *other* satellite service and could market himself as "not the asshole who shut down cable service!)

    9. Re:Idiots ... by Gavrielkay · · Score: 1

      It is similar to the problem that Uber is having with taxi services. The Australian providers and taxi services are subject to presumably expensive regulations. Due to this expense and other regulated limits on their services, they might be less attractive to users. However, it doesn't take much to understand why the people in those businesses stuck following the rules aren't happy when customers cheat and use unauthorized alternatives. The real answer is to investigate the regulations. Get rid of rules that only impair customer service and make sure the ones that protect customers/users are followed by everyone.

      Netflix isn't cheating here. They have no reason to work hard to tell a VPN user from Australia from any other VPN user who just wants privacy. But the Australians who use Netflix rather than the local (hopefully) law abiding services are cheating. Quikflix is going after the wrong people.

    10. Re:Idiots ... by mattventura · · Score: 1

      The whole concept of "regional licensing" when we have a global communications network is absurd to begin with. If Netflix truly is turning a blind eye to people circumventing this idiocy, more power to them.

    11. Re:Idiots ... by tlhIngan · · Score: 1

      Didn't the Australian government sort of recommend users to bypass Geo-IP blocks using VPNs and all that as a way to get cheaper content?

      https://www.techdirt.com/artic...

    12. Re:Idiots ... by Firethorn · · Score: 1

      If people are getting VPN subscriptions, it's probably for porn, business, and/or free video streaming services like hulu.com or thedarewall.com

      Don't forget that they have to get a non-australian credit card as well, in most cases. It's one of Netflix's checks. I agree, I wouldn't be getting a VPN 'merely' for netflix unless 'quickflix' just sucks that horribly(and to be fair, it probably does). It's one of those things where VPN use might be very common in Australia because their internet laws are pretty screwed up.

      Oh, and there's another reason for getting a VPN and US credit card - Steam. Australia is one of the more strict nanny-states when it comes to game violence regulations, so there's quite a few popular games that it's citizens either can't get at all, or have to pay 50% more for a 'toned down' version that's missing content and has had the blood turned green or something.

      So since once you have a VPN, the marginal expense for more bandwidth is typically quite low, it provides an incentive to use it even more. You get it for Steam where it can pay for itself with a 'one A list game a month' habit and because you already have it you might as well use it for porn, Netflix, etc...

      Of course, I'm even tougher than most to detect - I have a VPN set up on my own VPS. Sure, it's a few bucks more but I can run a server doing whatever I want.

      --
      I don't read AC A human right
    13. Re:Idiots ... by AmiMoJo · · Score: 1

      To be fair they might be screwed by an inability to licence stuff. A lot of services outside the US have poor catalogues. Even Netflix can't compete with BitTorrent.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
  5. Amusing by Dega704 · · Score: 5, Insightful

    It says a lot about Quickflix's service when Netflix via VPN is an actual competitive problem for them.

    1. Re:Amusing by jellomizer · · Score: 1

      How dare Netflix provide services that the customer wants at a price the can afford!
      That people are willing to follow a bunch of hacking methods to get access to a service that they will pay for!

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    2. Re:Amusing by fustakrakich · · Score: 1

      "flix".. Netflix should sue!

      --
      “He’s not deformed, he’s just drunk!”
    3. Re:Amusing by Thanshin · · Score: 5, Funny

      It says a lot about Quickflix that their CEO just told their remaining clients how to go to the competition.

    4. Re:Amusing by Anonymous Coward · · Score: 1

      Probably says more about the film industry in general. They either don't license outside the US at all or demand high licensing fees and DRM. Plus in non-English speaking countries you often only get shitty localised shows. Nobody can compete with Neflix US because they'll never get the same amount of content for the same price.

  6. Concentrated stupidity by Thanshin · · Score: 1

    If stupid was flammable we'd have already seen the flash and soon would come the boom.

  7. Quickflix must be a very poor substitute by 91degrees · · Score: 2

    If people are paying extra, and going to the hassle of signing up with netflix and dealing with the workarounds for paying and actually getting the service rather than just using your service, I think you're doing soemthing wrong.

  8. I thought they have tried region code for DVD/BD.. by thieh · · Score: 2

    And that never works well for some reason. Why would anyone think region restriction would be a thing to try now?

  9. Joke's on them by skirmish666 · · Score: 1

    You only need a smart dns service.

    Seriously though, if your local product can't compare to the cost of a Netflix subscription PLUS a smart dns / VPN subscription you're doing it wrong.

    --
    Sigger than your average
    1. Re:Joke's on them by tom229 · · Score: 1

      Much cheaper than VPN too. I use one, and have been for the last year or two. I've always been curious how it works though. My current theory is that it must exploit a function of the netflix protocol that uses a separate domain to authenticate the stream than it does to stream the content. Thus your dns provider can detect dns lookups to this address (lets say authenticate.netflix.com), proxy the authentication for you, and then let the stream between you and netflix's servers commence directly once youre authenticated.

      Could anyone elaborate and provide a complete low level understanding of how this works?

      --
      If it ain't broke, don't fix it.
    2. Re:Joke's on them by skirmish666 · · Score: 1

      It only uses DNS - no auth, http or any other information goes via the smart dns. Afaik the DNS server either points you to the correct geo-location for that netlfix location or tells netflix that any requests from clients using it are from that location.

      --
      Sigger than your average
  10. Quickflix? You call that a streaming service? by NotDrWho · · Score: 1, Redundant

    THIS is a streaming service.

    --
    SJW's don't eliminate discrimination. They just expropriate it for themselves.
    1. Re:Quickflix? You call that a streaming service? by Cigarra · · Score: 1

      THIS is a streaming service.

      I see what dun deere.

      --
      I don't have a sig.
    2. Re:Quickflix? You call that a streaming service? by Drathos · · Score: 1

      And here I was thinking that you were going to link to this..

      --
      End of line..
  11. We can do this the easy way or the hard way by tepples · · Score: 1

    Why would Netflix voluntarily give up its customers to a competitor?

    Because it's the easy way, compared to the hard way of QF pressuring the movie studios to withdraw NF's streaming licenses altogether if NF doesn't improve enforcement of territory limits in the existing contracts with the movie studios.

  12. Can return to? by fahrbot-bot · · Score: 1

    ...Quickflix told Netflix to stop this practice, so Australian viewers will be forced to return to Quickflix and other local alternatives.

    Fixed that for them.

    --
    It must have been something you assimilated. . . .
  13. billing address checks? what checks? by QuasiSteve · · Score: 1

    credit card billing address checks it already runs

    What checks are those? Just the regular payment ones to prevent CC fraud?

    As far as I know, Netflix doesn't particularly actively use the billing address to restrict services to a particular region - they use IPs for that. That's why for any country where Netflix launches a service that differs from the U.S. one (fewer titles, episodes released much later, etc.), you'll find tutorials popping up on how to get yourself a VPN service that has U.S. IP addresses and even VPN services advertising themselves (directly and indirectly) as being perfectly suited for the job. Hell, you'll find those tutorials for countries where Netflix hasn't even launched at all, and I'd imagine there's tips for U.S. users on getting a VPN to enjoy some foreign titles not available there, too.

    Josh Taylor (ZDnet article author) basically has the right idea, but is targeting the wrong people. Yes, geo-restriction is "a form of old-world trade protectionism that is an anachronism", but rather than complain that Quickflix wants others to play by the rules that they're legally bound to, he should complain that Netflix is playing loose with those rules without letting them go entirely. Netflix should offer up the same content everywhere without the need to use a VPN, if they're effectively allowing it, knowingly and willingly, anyway.

    1. Re:billing address checks? what checks? by Gavrielkay · · Score: 1

      Except Netflix is also bound by stupid rules and regulations. The entertainment industry is set up to milk every last penny they can, so I would assume that the contracts that Netflix has with Hollywood etc. don't allow them to offer all content to all regions even if Netflix wanted to. For Netflix' part, I'm sure the more subscribers they have, the more money they make and the better leverage they have in signing new content. I wouldn't think they'd go any further than absolutely necessary to prevent paying customers from accessing the service.

    2. Re:billing address checks? what checks? by Drathos · · Score: 1

      The content owners don't let Netflix have the same content everywhere. They have to negotiate whole new licenses for each country they want to serve.

      They're allowing the VPN users because, to Netflix, it looks like it's coming from a valid IP in the US. That's the whole point of the consumers using the VPN services - to trick the geolocation check that Netflix has.

      --
      End of line..
    3. Re:billing address checks? what checks? by QuasiSteve · · Score: 1

      They're allowing the VPN users because, to Netflix, it looks like it's coming from a valid IP in the US.

      That was the whole point of my comment, though - the summary suggested that there's already checks on the billing address, when in fact Netflix doesn't much care where the billing address is - they serve up the content portfolio based on the IP address. If they did use the billing address, then that account could log in from whatever IP address they like, and they'd still get the content licensed for the country/region that matches the billing address.

      And yes, I know the content owners "don't let Netflix".. and, yet, here we are.. unless there's a major kerfuffle going on behind the scenes between the content owners and Netflix regarding the VPN loophole.

  14. Bad government by DMJC · · Score: 4, Interesting

    This is all because in the 1990s the government allowed FOXTEL to goto the USA, and buy up exclusive licenses to all new and back catalogues from every major media company in America. They spent billions on it and at the time everyone thought they were overpaying.Turns out they very smartly bought themselves a monopoly position in media, one that has effectively locked out all Australian competitors (All the local media services are shit, from the PSN movies, to Xbox Live, to Quickflix.) and the government hasn't had the balls to call them out and break them up for it.

  15. Re:doesn't sound like Netflix is the problem by Gavrielkay · · Score: 1

    Unless their product isn't so much "bad" as hampered by local regulations that Netflix isn't subject to. Lots of things are cheaper/easier/better when the provider skirts all the regulations heaped on the industry. I'm all for protective regulations, but where entertainment is concerned almost all the rules are more about being sure pockets get lined than making sure customers are protected. In my mind, Netflix isn't doing anything wrong. The Australians who are cheating the system rather than working hard to fix it are more the problem, though I don't really blame them.

  16. Quickflix sucks by GreatDrok · · Score: 4, Interesting

    There are a few similar services starting up down here. I had a look at Quickflix because they have a client for my smartTV and TiVo but all they have to offer are old BBC shows which I already own on DVD and their movie selection is woeful even compared with what we can get on AppleTV. Worse, the compression is too high so what they do have looks terrible. If they had the vast array of stuff that Netflix has then they might have a chance but without it they're going nowhere. I don't subscribe to Netflix as I've taken the approach of buying or renting what I want to see but if it was legitimately offered here I would be interested.

    --
    "I have the attention span of a strobe lit goldfish, please get to the point quickly!"
  17. IP geolocating and credit card billing address by Uloi · · Score: 1

    "beyond the IP geolocating and credit card billing address checks it already runs" What else can Netflix do? Anyone know? Also Reed seems to be implying Netflix is actually encouraging it. Does anyone know how?

    1. Re:IP geolocating and credit card billing address by Uloi · · Score: 1

      And while I'm at it, nice mimicking Netflix's name and logo.

  18. Netflix might try..but not to help quickflix. by enter+to+exit · · Score: 1

    When Netflix eventually deems fit to grace us with it's presence, it's offerings are going to be nowhere near the same as the US version. It's doubtful if it'll be the same price as well. They might crack down on VPN users to force them to move to the Australian version.

    Netflix could play cat-and-mouse and block known VPN IPs until customers simply give up (and probably torrent the shows they want).

    Most Aussies use the same couple of VPN services, they could easily fatigue the vast majority of illegitimate Aussie Netflix subscribers.

    It takes minimal effort for netflix to do this, but they have no reason to until they launch in Australia.

  19. Captive market by dbIII · · Score: 1

    With few suppliers the price goes up. You can see that with a lot of things in Australia, paticularly software with Microsoft, Apple, Adobe etc charging a lot extra because they can.

  20. In case it didn't make sense by dbIII · · Score: 1

    Travel+Holiday expenses+mac at US price (LessThan) same mac at AU price

  21. A simpler answer by dbIII · · Score: 1

    It would provide unwanted competition to Rupert Murdoch.
    Your second point is not correct or relevant since people are already using Netflix in Australia despite deliberate steps being made to stop them.

  22. Not like that at all by dbIII · · Score: 1

    It's not like that at all, we have very lax media controls.
    I know you gun nuts think it's gone all Thunderdome over here since we restricted automatic weapons, but could you please refrain from making up utter bullshit about us on every fucking topic under the sun?

  23. Not bad government, did as ordered by dbIII · · Score: 1

    Not a bad government - they did exactly what they were paid to do :(
    One guess who owns AU foxtel, US fox news and is a big political donor.

  24. Can't compete? by CanEHdian · · Score: 1

    If you can't beat them, outlaw them

    There's really not much to see here if you exclude the "Premium" titles. It's a bit how lefties want to make people use public transportation: not by improving public transportation (increasing quality of life), but by making the car less attractive (decreasing overall quality of life). Quickflix CAN be a one or two bucks per month more expensive... but have 90% of what Netflix US has, and add to that a bunch of quality Aussie content, and they'll blow Netflix out of the water. But no, let's take the easy way out again (a/k/a Sit On Fat Well-paid Ass) and attack the alternative.

    --
    When the copyright term is "forever minus a day", live every day like it's the last.
  25. No it was Apple, but ... by dbIII · · Score: 1

    No it was Apple, but Adobe is probably even worse.

    1. Re:No it was Apple, but ... by Farmer+Tim · · Score: 1

      The article you're probably thinking of is this one. It was effectively Adobe's response to an inquiry into software pricing by the ACCC (Australian equivalent of the FTC) last year (along with claiming that the increased cost was due to language translations...last I checked we speak English here).

      Apple's AU tax is 10%, which doesn't make traveling to the US even remotely economic.

      --
      Blank until /. makes another boneheaded UI decision.
    2. Re:No it was Apple, but ... by Farmer+Tim · · Score: 1

      Less than 10%...Slashcode ate the sign.

      --
      Blank until /. makes another boneheaded UI decision.
    3. Re:No it was Apple, but ... by dbIII · · Score: 1

      Doesn't matter since it's sadly nowhere near the truth, even though I'd like it to be and Apple are not the worst offender. Where did you get that incorrect figure from? I find it very annoying to be served a smug "correction" with such an obvious lie. You should be either very embarrassed to be fooled in such a way or ashamed of yourself for making up such an obvious lie.

    4. Re:No it was Apple, but ... by dbIII · · Score: 1

      When the $AU was higher the apple price was still significantly higher than the $US.

  26. I'm sure quickflix does but ... by wolja · · Score: 1

    Given Village Roadshow and Foxtel apparently have our AG in their pockets, and Rupert baby owns our PM, I'm sure that many many millions will be spent trying to block VPN's.

    Quickflix's two big problems are most of it's movies are on DVD mailed out and they are caught in the let's overcharge the Aussies mentality of the content providers so their offering is tiny.

    Foxtel are trying to pretend to lower prices at the moment but are more interested in getting the govt to try the great firewall of Aus and harsh penalties for accessing content that doesn't have the 50+% surcharge they love.

    Oh for the days when Governments were of the people and for the people rather than of the highest bidder for the highest bidder.

    --
    Wolja Future Tombstone: Shit happened then I died
  27. No I was not thinking of that one by dbIII · · Score: 1
    No I was not thinking of that one. I wrote above: "A few years back it was shown in a Mac laptop review". The review in question was in a newspaper called "The Australian" and it was way back when the "titanium" Mac was released.

    Apple's AU tax is 10%

    Utterly wrong. The ACCC found differently recently - follow your own link and you'll most likely see Apple stuff too, it certainly got into the papers. I don't know what they can do about it other than warn consumers that they are being ripped off. Apple, among many others (MS, Adobe, AutoDesk etc) are taking advantage of the supply chain in regions with little competition by price gouging.

    It seems to be an increasing trend on this site - smug "corrections" based on either misunderstanding of the post that a person is replying to or deliberate "reality distortion" by fans upset that the object of their veneration is being addressed in less than glowing terms.