It's ironic that Netflix shares jumped on Friday in response to it putting up subscription rates when the move itself was a response to more competition.

While subscription price increases have been announced only in its two major and most established markets – the US and UK – it's hard to imagine it won't roll out the new price structure in Australia eventually.

Netflix chief executive Reed Hastings has more competition on his hands. Credit:

Netflix is now the biggest producer of original – non-sports – content in the world and to maintain its edge in the streaming market it needs to offer those content-thirsty consumers more than its myriad competitors that are in catch-up mode.

Netflix has wisely decided not to fight on price – rather better quality and more choice.