GENERAL: SPK: Spark New Zealand partners with Netflix

MARKET RELEASE

27 February 2017

Spark New Zealand and Netflix, the global internet television network, are announcing an exclusive partnership that gives Spark broadband customers a subscription to Netflix's Standard plan for one year when they sign up to a 24 month Unlimited Data Spark broadband plan. This is the first time that Netflix has been bundled with broadband in New Zealand.

Long gone are the days when New Zealanders had no choice in the way they watched TV and video. Many households now use a combination of entertainment services such as Netflix and Lightbox to access all the hit shows and movies that they love. Reflecting this, Netflix will sit alongside Spark's current Lightbox offer.

Jason Paris, CEO for Spark Home Mobile and Business, says, "In combination, these highly desirable content streaming services mean you get an incredible entertainment package bundled with your Spark broadband. By bringing Netflix and Lightbox under the same roof, we make it easier for our customers to access the content they want to watch, when they want to watch it.

"We know that our customers love Netflix and Lightbox. We've just announced that Lightbox is now approaching 250k subscribers and we already see the popularity of Netflix in New Zealand - around a third of the data over our broadband network on an average evening is customers streaming Netflix and Lightbox.

"This announcement is a step on the road towards Spark becoming a go-to destination for media and entertainment. Our ambition is for Spark to become a preferred content provider for New Zealanders, delivering a range of potential content (from TV and video, to sport and so on) and a simple way to access the content that most interests them."

Simon Moutter, CEO, Spark, adds, "Spark customers who take up a 24 month unlimited broadband plan now have access to a huge content library, with thousands of hours of TV and movies.

"This move is consistent with the Spark media strategy outlined in previous investor updates, starting a shift to a more open, platform-centric approach, to be able to offer customers an even bigger range of content choices.

"It is also consistent with our shift towards becoming a digital services provider, rather than just a traditional telco. We're growing our platform approach with a range of providers, providing a mix of digital tools to support our customers' lives."

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