Netflix in Australia has the problem that they're also competing with Presto and Stan, who are owned by the major free-to-air TV networks, and who also have exclusive deals for a lot of American shows/movies and thus Netflix couldn't have a lot of stuff available in Australia.
True. As a consumer, I'd have to subscribe to three+ different providers, all charging a monthly cost, to get at everything now. Or more specifically, just the things I want to watch.
The 'old' Foxtel model was similar; you want to watch a few things? Well, you'll have to buy all the channels for $100+ per month just to see the bits you want.
It doesn't seem like a sensible situation for the people that want to sell content. Seems very sensible for the people that want to control the content though, in terms of making out like gangbusters.