Impact of the NBN on Traditional Business Models

POSTED: October 24, 2017 BY: CATEGORY:

The NBN rollout across Australia is under way (despite it not reaching Flemington yet where I live!) and this means that for many people, especially those in more remote areas, they are able to access high speed internet for the first time. This has had a significant impact on Internet companies and also on many online retailers.

The quality of Internet access has risen across Australia as a result of the NBN and while this has worked in favour of some industries, there are other cases where it has been detrimental. According to a report by IBIS, online retailers have been thriving as a result of the NBN, while bricks and mortar video and DVD rental businesses have been struggling.

Many of the challenges associated with video and DVD rental have arisen out of the increased popularity of streaming and on demand services like Netflix and Stan. The higher levels of internet access around Australia have meant that these services have become accessible to a broader range of customers than ever before, meaning fewer are now turning to physical DVD rental stores and more are choosing to stream all their content online.

For those who do still want to hire DVDs, rental kiosks are becoming the main port of call rather than the traditional video rental stores, and this is having a further impact on physical video rental businesses.

While the NBN and the general advance of high speed Internet may be detrimental to many video rental businesses, other businesses are thriving, in particular online retailers.

When the internet first came about, shopping online was viewed with suspicion, but over the years buying just about anything online has become accepted as safe and trustworthy and a good alternative to shopping at bricks and mortar shops. With many bricks and mortar businesses now launching their own online stores, and the number of people getting online increasing, it looks likely we’re going to experience even more growth in the online retail sector over the next few years.

If you have an online business or you’re thinking about setting up as an online retailer there has never been a better time to do it. The figures show that as the NBN becomes more widespread, online retailers will have access to a growing customer base that will be looking to take advantage of faster Internet speeds and increased connectivity to purchase online.

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