Aussie TV set for a huge shake-up

The US streaming service will hit local shores in March. Will it change the face of Australian TV?

Get ready for change ... Source: Getty Images

TV in Australia is about to get a big shake up.

While the manufacturing giants are spending most of their time these days going on about "OLED", "Triluminos", "S'UHD" or whatever other confusing names they can come up with to push their products, something much bigger is going on behind the scenes.

Because the fact is that while Samsung, LG and Sony are all divided over their different display technologies, the one thing they all unanimously agree on is that digitally streaming content is fast becoming the most popular way people consume content.

MORE: Netflix tight lipped on geoblocking at CES

You just have to look at the success of companies like YouTube and GoPro who have made their billions by either hosting or being used to create content for people to spend hours streaming.

The ease of creating and showing people videos has made amateur footage, whether it be of sport, comedy or tutorials, a magnet for eyeballs. The fact that nearly all TVs now come with a YouTube app installed reinforces this. Minecraft tutorial videos, such as this one, have attracted more than 8 million hits alone:

But of course, where the real change is about to happen is in the streaming content market. All the big players are set to make a splash in 2015, with Foxtel and Channel 7 combining for Presto Entertainment, Channel 9 and Fairfax partnering for Stan and of course the world's most popular streaming service Netflix.

In the USA where Netflix launched years ago, the service is so popular that 30 per cent of the country's internet traffic in peak times is just from Netflix.

Another survey from Sony owned Crackle showed that 83 per cent of the US streams TV and movies over the internet. For those aged under 30, the stats are even higher, at 90 per cent.

Get ready to hear a whole lot more about Netflix ... Source: Getty Images

For at least the next 12 months, the market will be fragmented due to exclusive contracts signed some time ago for big shows, with most of these owned by Foxtel. This means that Presto will be exclusively streaming some shows, while Stan and Netflix will be streaming different exclusives that they don't have.

However, once the rights for individual shows expire, the content deals could go anywhere.

Netflix spokesman Cliff Edwards told news.com.au today at CES that the company no longer looks to sign contracts for individual countries and regions, but globally.

One example of this is Batman spin-off Gotham., In Australia, Channel 9 owns the broadcast rights, but Netflix owns the global streaming rights. This means, the day after Channel 9 airs its episode of Gotham, Netflix will have the episode online in its library for subscribers to watch.

For now, that business model seems the immediate future, but with blockbuster TV shows like House of Cards increasingly being commissioned by streaming companies like Netflix, it has become evident that the future of our media consumption is going to be on streaming services like Presto, Netflix and Stan.

Mr Edwards also told news.com.au that if the right locally produced Australian TV show popped up, Netflix would have no problem jumping on it to commission the show.

Companies such as Sharp are incorporating Google's Android TV software so that viewers can use a variety of streaming apps, such as Netflix and Hulu, without a separate device. Source: AP

However, Foxtel's Director of Presto and VOD Shaun James told news.com.au that the company believes streaming services like Netflix and Presto will compliment existing cable subscription services rather than replacing them.

"Streaming services aren't an either or, but rather an and," said James.

While content is key for the future, software and ease of use is equally as important.

As it stands, traditional broadcasters don't broadcast in high definition on their main channels.

With streaming, as opposed to traditional TV, all our major shows can be broadcasted from either the lowest quality possible, right up to 4K. It's for that reason that TV makers like LG are pushing the services to compliment the technology they're engineering. LG Australia's General Manager of Marketing Lambro Skropodis told news.com.au that their partnership with GoPro for the GoPro channel helps legitimise beautiful 4K content and makes it accessible in ways that traditional broadcast television can't.

Streaming services also have the advantage over traditional TV services of being able to not only give access to content whenever the user wants, but to use special algorithms to work out what the user might want to watch next based off their previous habits. While this obviously benefits the consumer hugely, it means that people will be spending more time watching content and giving providers more opportunity than ever for revenue.

But as great as all this new technology is, it is still yet to be seen whether Australia's internet can handle that much data being streamed. Especially without a complete fibre connection like in the US and Europe. With the Government's new multi-technology NBN, it doesn't look like this will be changing anytime soon either.

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