Australians are all too used to paying a premium for movies downloaded with iTunes or Google, and one local retailer has had enough.
Online entertainment provider EzyFlix.tv, which sells new release movies individually online, has launched a loss leading Christmas offer, selling movies like Guardians of the Galaxy and Transformers Age of Extinction for $16.99.
This represents a saving of up to 33 per cent compared with iTunes and Google Play.
Craig White, CEO of Access Digital Entertainment, the company behind EzyFlix.tv, told Business Spectator the pricing model of online titles in Australia was non-sensical.
"It's just not right that somehow Australian consumers are being asked to pay more than consumers in the US. I think all of the usual reasons why one markets pricing would be different to another - GST, company tax, wages, rent - none of that stuff holds true in regards to the supply from studios of digital content and therefore retail price," he told Business Spectator.
"It is a bit of a stunt? Yes, but there'll be more stunts needed in order to fix the pricing structure in Australia, it's just not right."
Mr White said that though he'll be losing money on the promotion, EzyFlix.tv hopes to demonstrate to studios that consumers will choose to pay for the content they love if they can access it conveniently and are not ask to pay what he describes as an unfair market premium.
Ezyflix.tv allows consumers to stream or download content anywhere on up to five devices linked to their account, including iOS and Android devices as well as big screens via the Samsung SmartTV application or Google Chromecast.
"I was lucky enough to go the premiere of The Water Diviner the other day," Mr White said. "And it's starring Russell Crowe, it's directed by Russell Crowe, it was made in Australia, it's full of Australians, and it's a great Australian story. Why should we pay more to watch it then people overseas?
"We've got to take some sort of responsibility to say let's address this issue," Mr White said.
"And it's not a retail issue, it's a wholesale pricing issue. I hope to really raise awareness about the issue and hopefully studios get the message."
Mr White confirmed subscription services Netflix and Stan won't represent strategic threats when they launch in Australia next year as they instead offer an opportunity for increased consumer awareness about video streaming, which he says "isn't there yet."
This news story is reprinted from www.theaustralian.com.au
Read more details on Accounting Outsource
Online entertainment provider EzyFlix.tv, which sells new release movies individually online, has launched a loss leading Christmas offer, selling movies like Guardians of the Galaxy and Transformers Age of Extinction for $16.99.
This represents a saving of up to 33 per cent compared with iTunes and Google Play.
Craig White, CEO of Access Digital Entertainment, the company behind EzyFlix.tv, told Business Spectator the pricing model of online titles in Australia was non-sensical.
"It's just not right that somehow Australian consumers are being asked to pay more than consumers in the US. I think all of the usual reasons why one markets pricing would be different to another - GST, company tax, wages, rent - none of that stuff holds true in regards to the supply from studios of digital content and therefore retail price," he told Business Spectator.
"It is a bit of a stunt? Yes, but there'll be more stunts needed in order to fix the pricing structure in Australia, it's just not right."
Mr White said that though he'll be losing money on the promotion, EzyFlix.tv hopes to demonstrate to studios that consumers will choose to pay for the content they love if they can access it conveniently and are not ask to pay what he describes as an unfair market premium.
Ezyflix.tv allows consumers to stream or download content anywhere on up to five devices linked to their account, including iOS and Android devices as well as big screens via the Samsung SmartTV application or Google Chromecast.
"I was lucky enough to go the premiere of The Water Diviner the other day," Mr White said. "And it's starring Russell Crowe, it's directed by Russell Crowe, it was made in Australia, it's full of Australians, and it's a great Australian story. Why should we pay more to watch it then people overseas?
"We've got to take some sort of responsibility to say let's address this issue," Mr White said.
"And it's not a retail issue, it's a wholesale pricing issue. I hope to really raise awareness about the issue and hopefully studios get the message."
Mr White confirmed subscription services Netflix and Stan won't represent strategic threats when they launch in Australia next year as they instead offer an opportunity for increased consumer awareness about video streaming, which he says "isn't there yet."
This news story is reprinted from www.theaustralian.com.au
Read more details on Accounting Outsource
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