Netflix has signalled its desire to create more local partnerships as it moves to increase its subscriber numbers by adding value to its service as the battle for audiences steps up this year.
Last week, Netflix announced a partnership deal with AGL Energy, which gives the energy company’s customers access to Netflix Standard with Ads.
The move aims to add value for customers while improving efficiencies by offering two services in one bill. It also serves as a technique to minimise churn, with consumers less likely to cancel the subscription once it is integrated into another plan.
Ben Cox, director of business development of Netflix ANZ & Philippines, told Mediaweek the global streaming giant will continue to look for partnerships that “deliver on user experience and create great value for our subscribers.”
“Creating great value bundles with partners is something Netflix does globally and is core to our business in Australia,” he added.
Cox said the key to Netflix’s global strategy is partnerships that deliver great value and a simple user experience.
“As one of Australia’s leading utility providers, AGL has always made it simple and easy for customers to sign up for their essential householder services — and now with the addition of Netflix, we see things being even simpler.”
Cox said the timing felt right for the streaming platform and AGL to join forces to deliver “much-needed value for Australian consumers.”
The Netflix plan is ongoing for the life of the AGL plan rather than a shorter promotional period. Cox explained that short-term promotional offers attract only new customers, leaving loyal customers “to think ‘what’s in it for me?’.”
“The advantage of the AGL Netflix Plan is that it’s available to both new and existing AGL customers — with those who sign up continuing to benefit from a great value deal for the duration of their time with AGL.”
It’s perfect timing as the streaming sector prepares to step up a notch with the arrival of impending arrival of advertising tiers for Prime Video and Paramount+ this year to maximise the budgets shifting away from linear TV.
It comes as Australians continue to feel the bite of interest rate increases, inflation and the impact of the global economic instability. With rising household costs, consumers have been cutting back on expenses, including streaming subscriptions – a move that Netflix is hoping to address with this deal.
Last year Telsyte’s annual industry survey revealed Netflix subscriber numbers had dropped three per cent to 6.1 million over the past year, representing a loss of 189,000 Australian subscribers over the last 12 months.
It’s not just Netflix looking to add value in the eyes of consumers. With energy prices soaring, AGL is also hoping to curry favour with consumers by offering the Netflix deal.
AGL chief customer officer Jo Egan said the partnership aims to help consumers by bundling two household services together.
“We know that 69% of Australians use at least one streaming service. That’s why we have launched an energy-category exclusive partnership with Netflix in recognition of the pivotal role streaming entertainment now plays in our customers’ lives,” she said.
“Many of us turn on Netflix when we hit the couch as naturally as we turn on the lights when it gets dark. For those who join the AGL Netflix Plan, they will have access to thousands of films and TV series on demand as part of their electricity account.”
Egan explains the new partnership exists to give AGL customers the convenience of having one provider for their home necessities, with ‘one less bill to think about.’
“This demonstrates AGL’s commitment to catering for our customers’ at-home needs and innovating for the future, including electric vehicle charging plans, telecommunications bundling options and energy deals,” she said.
Top image: Ben Cox