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LG Oz To Benefit From Netflix Investment In Original 4K TV Content

By David Richards | Thursday | 23/01/2014

LG Electronics Australia who according to Reed Hastings the CEO of Netflix will be the first Australian TV Company to legally get their 4K streaming service is set to gain a major advantage with the Company set to deliver content that is not available to other TV Companies, Foxtel or free to air TV stations.

Speaking at the announcement of their annual results Hastings said that their Ultra High Definition (4K) streaming service will be encoded at 15.6Mbps which is within reach of most Australian broadband services. Reed said that that the bandwidth demand of 4K streaming, is now "well within reach of their subscribers" He said that the service will be expanded to 20Mbps broadband and will continue to grow."

Currently Netflix is putting a lot of energy and money into original content, with the new seasons of House of Cards set to be available to LG 4K TV customers in Australia by May 2012, it goes to air in the USA in February.

The US streaming Company who has moved to generating their own content as opposed to relying on Hollywood movie houses has allocated $7.3 billion for generating original content.

This includes some exclusive premieres that are planned for later this year, it is not known how much of this content will be available on an LG 4K TV in Australia.

Overnight the US Company said that their overall earnings had been dragged down by overseas losses, at CES 2014 Reed told Smarthouse that he was keen to launch Netflix in Australia but was restricted by the high fees that Hollywood movie studios were asking for Australian rights.

With over 44 million customers worldwide, the company reported $1.18 billion in revenue in the fourth quarter, with $48 million of that being net income.

For the first quarter of 2014, the company is forecasting an almost 60 percent increase in net additions from the prior year, from 1.02 million to 1.60 million. It expects overseas losses to drop to $42 million, a $15 million improvement from this quarter, on the strength of what it calls a "substantial European expansion."

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