Paid video streaming services such as Netflix are said to revolutionise the way consumers watch television, with a wealth of programmes waiting to be downloaded legally from the internet.
Netflix is the world's most popular in more than 40 countries and is expected to be launched in Australia in March.
Some viewers are already watching it by using software to bypass blocks to access the American provider.
Choice’s Matt Davey said an estimated 340,000 Australian households were already using methods to get around the blockers.
“It may be something that gets you kicked off a certain service provider,” he said.
Content is key in Netflix's success, producing popular shows like House of Cards, a winner at the 2015 Golden Globes, earning a shout out from its star Kevin Spacey.
But analysts say Australian demand for local programming like news and sport will limit the impact on traditional television.
Deloitte’s Mason Davies said Australia has a great amount of great local content, but expects that by the end of the year, 20 per cent of households would have “three or potentially more” subscription services.
There are also concerns about affordability and speed in regards to internet usage, with the building competition leaving some analysts asking whether Australia's infrastructure will cope.
A report by business solutions company Akamai ranks Australia at number 44 when it comes to average connection speed, behind countries like New Zealand, Singapore and South Korea at number one.
It comes as NBN Co continues its roll out of the National Broadband Network.
Twenty-thousand homes and business in parts of Western Sydney will soon become the first in the city to complete the transition to the NBN.
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