How Netflix Is 'Going Global By Keeping Content Local'

Netflix, Inc. NFLX on Monday unveiled three pricing tiers the company plans to offer to its Australian clients. A standard definition package begins at AU$8.99 per month, while the top-tier package offers Ultra-high definition with up to four simultaneous streams for AU$14.99 a month.

The entry-level pricing tier places Netflix on a similar level with its Australian peers, but Netflix holds an advantage by offering local content.

Zdnet reported that Netflix has been in discussions with Australian content owners to acquire the streaming rights ahead of its 2015 launch and various Netflix executives have been in the country months in advance negotiating deals and talking to partners.

In fact, Netflix secured agreements with Internet providers including Optus and iiNet in which customers can access Netflix unmetered, that is data downloads won't be counted against their monthly quotas.

Related Link: Why Netflix Stock Is At A 'Buying Opportunity'

Meanwhile, it is estimated that as many as 200,000 Australians have already been accessing Netflix through virtual private network services that make their IP address appear in the U.S. or other countries where the company operates. Netflix is hoping that its incentives with local Internet providers and a strong library of local content can deter users from accessing Netflix through VPNs.

One Step Closer Towards A Global Platform

"Netflix now approaches its content negotiations looking to sign global deals to get access to TV shows and movies in every country at the same time to avoid library discrepancy, but it will still take a while for Netflix to get to a single, global platform for content," Zdnet noted.

Netflix's Australian content was reportedly leaked and showed original Netflix content, including "House of Cards."

However, in Australia, Netflix signed a deal with Foxtel to air "Orange is the New Black," and the company did not initially have the rights to the third season of its own show, which is set to air in June. Netflix has since re-negotiated with Foxtel so that Foxtel can air the third season week by week, but the whole season will be available to stream online at the same time as the rest of the world.

Shares of Netflix traded recently at $426.26, down 0.5 percent. Shares are down 9 percent over the last month, but up 25 percent in 2015.