2013 Australia - Broadcasting - Digital TV, Pay TV, IPTV

Publication Overview

For those needing high level strategic information and objective analysis of Australia’s FTA TV, Digital TV, Pay TV and radio markets in Australia, this report provides essential reading and gives in-depth information on:

  • Revenue and subscriber statistics;
  • Analyses of market and industry trends and developments;
  • Regulatory and government policy developments;
  • Overviews of key market segments including:
    • IPTV;
    • Digital Radio;
    • Interactive TV (iTV).
  • Overviews of major players in the market including:
    • Public, Commercial and Community FTA TV broadcasters;
    • FOXTEL;
    • ABC and SBS;
    • Southern Cross Media Group;
    • Seven West Media.

Researcher:-Stephen McNamara
Current publication date:- March 2013 (14th Edition)

 

Executive Summary

FTA broadcasting versus subscription TV versus IPTV and the battle for supremacy

As the television broadcasting industry moves towards 100% digital signal saturation the industry is coming to the crossroads where the viewing audience and their choices will determine the course. By end-2013 the digital TV signals will have become the norm as analogue TV broadcasting ceases. The subscription TV (STV) has had both satellite and cabled networks in digital for some time. The final bastion of the analogue transmission spectrum may remain in use for many decades before we hear finally digital radio across all of Australia.

Currently at the television crossroads, we see big TV and its traditional FTA viewing mediums incurring greater debts and losses in market capitalisation as big TV is driven by market share reporting. Nevertheless the FTA industry is working hard not to be left behind and is to moving into the digital media arena. Catchup TV is gaining greater accessibility for viewers on the move, using WiFi and the mobile networks to retain viewers.

Interactive TV (iTV) is slowly getting a push by the FTA broadcasters as they use social media platforms to gain viewer interactivity, feedback and thereby the ability to target ads to these interactive users. However, concerns still remain about the emergence of a sustainable revenue model and the current lack of unified technical platforms, but using the web and apps may provide a solution using the Social TV platform.

The biggest pay TV operator, FOXTEL, has been at the crossroads for some years now and seems to have stalled as household penetration languishes. In 2012 we saw the merger of AUSTAR into FOXTEL and since that time its revenue has risen on a year-on-year basis. By 2013 pay TV household penetration continues to fall and BuddeComm sees is unlikely to reach 30% for a number of years if the current STV practices continue.

Subscription TV growth is slowing as subscriber churn increases and new subscribers are wary of a long-term commitment as the market moves into 2013. BuddeComm sees the subscribers from the major STV operator falling as subscribers leave their existing Pay TV model for the FTA digital channels and their catchup TV options as well as other online services using Over-The-Top (OTT) digital media services.

BuddeComm believes that aiming STV services that are affordable will eventually see the subscribers come. Up until now, the traditional IPTV products by ISPs have failed to attract large user bases – in 2013 there are now only some 65 million users globally, and some 300,000 of these are in Australia. But the uptake of services through IPTV services such as FetchTV is starting to see an increase in numbers.

We are seeing correlation between the availability of high-speed broadband and IPTV usage and it is envisaged that a FttH-based NBN will drive new IPTV developments. The current IPTV models will need to be changed with the increased penetration of smart TVs. The rapid growth of smartphones and tablets is also giving this market a boost, as well as new business models such as pay-per-view. New IPTV services are already being streamed over these devices, as well as over gaming devices.

Advertising expenditure in Australia in the radio, FTA and STV market continuing to increase overall as does the expenditure by the businesses and consumers in this marketplace. However advertising spend in the radio sector radio decreased overall in 2012 but is expected to remain steady into 2013. The STV spend of advertising has been increasing, as the ad market sees these viewers having a greater disposable income.

Digital radio operates in the five capitals around Australia and with trial extension granted in Canberra and Darwin until July 2013. Digital radio listeners continue to increase by around 30% on a year-on-year basis while time spent listening to DAB and streaming internet radio also increase. Digital radio equipment sales and greater choice of availability for the home is also seeing more vehicle manufacturers entering the market.

Key performance indicators of the broadcasting, STV and IPTV markets – 2012

Metric

2012

Digital TV penetration

>93%

Homes with a TV set

>99%

Subscription TV household penetration

27%

Subscription TV annual churn

13%

iview downloads (million)

1.9

Subscription TV revenue (million)

$3.0

Subscription TV households (million)

2.3

Subscription TV subscribers (million)

2.5

Digital radio listeners (million)

1.0

(Source: BuddeComm, based on various industry figures and estimates)

Market highlights:

  • Revenue from subscribers to Pay TV companies increased in 2012.
  • Digital radio sales increased more than 50% year-on-year in 2012.
  • Estimated ARPU statistics and Pay TV revenue forecasts to year end 2013.
  • Subscription TV household penetration forecasts through to 2015 and 2020.
  • By early 2013 over 93% of households had converted to digital TV.
  • By end-2013 all digital TV transmissions will be Australia wide.
  • Radio listeners increase by 1% but digital radio listeners increased by more than 30% year-on-year in 2012.

Data in this report is the latest available at the time of preparation and may not include the current year.

Table of Contents

  • 1. The Broadcasting Market in 2013
    • 1.1 Changes to the industry
    • 1.2 Customers churn to other media models
    • 1.3 Analogue TV to cease by 2014 – whats next
    • 1.4 Digital TV nears 100% penetration
    • 1.5 Digital dividend
    • 1.6 Restacking the spectrum
    • 1.7 Viewer Access Satellite Television and restransmission
    • 1.8 Additional infrastructure to boost reception
    • 1.9 Local content and licensing fee reductions
    • 1.10 Digital Radio
    • 1.11 National Broadband Network to use multicasting
    • 1.12 Revenue trends in the media sector
  • 2. Free-to-Air TV
    • 2.1 Market Overview and Statistics
      • 2.1.1 Overview
      • 2.1.2 Digital media uptake increases alternative viewing methods
      • 2.1.3 Public broadcasters
      • 2.1.4 Private broadcasters
    • 2.2 Trends and analysis
      • 2.2.1 FTA industry faces increasing challenges
      • 2.2.2 Broadcasters utilising internet delivered media
      • 2.2.3 FTA viewing is moving from the big screen
    • 2.3 Market statistics
      • 2.3.1 Background information
      • 2.3.2 Advertising predictions into 2014
    • 2.4 Drama spending and production
      • 2.4.1 Advertising production
      • 2.4.2 Drama and content
    • 2.5 Broadcasters
      • 2.5.1 Overview
      • 2.5.2 Commercial television broadcasting licences
      • 2.5.3 Licence fee reductions
      • 2.5.4 Regional licence area plans
      • 2.5.5 Television aggregation
      • 2.5.6 National public broadcasters
      • 2.5.7 National commercial networks
      • 2.5.8 Major players in regional broadcasting
      • 2.5.9 Community television broadcasting services
      • 2.5.10 Indigenous broadcasters
  • 3. Digital TV
    • 3.1 Market Overview and Statistics
      • 3.1.1 Digital TV broadcasters
      • 3.1.2 Market trends, developments and analysis
      • 3.1.3 Statistics
      • 3.1.4 Market surveys
    • 3.2 Digital Video Recorders
      • 3.2.1 Introduction
      • 3.2.2 Subscriber statistics
      • 3.2.3 Key players and products
      • 3.2.4 DVRs and advertising
  • 4. Pay TV
    • 4.1 Subscribers, Overview and Analysis
      • 4.1.1 Market statistics
      • 4.1.2 Industry and market analysis
      • 4.1.3 Major players – overview and major developments
      • 4.1.4 Forecasts – Pay TV penetration – 2012 - 2015; 2020
    • 4.2 Industry Revenues and Analysis
      • 4.2.1 Market analysis
      • 4.2.2 Revenue statistics
      • 4.2.3 ARPU and churn Statistics
      • 4.2.4 Infrastructure statistics
    • 4.3 Foxtel
      • 4.3.1 Company information
      • 4.3.2 Operational results
      • 4.3.3 Financial results
      • 4.3.4 Acquisitions, alliances and subsidiary companies
      • 4.3.5 Products and services
      • 4.3.6 Company history
  • 5. Digital Media
    • 5.1 Global Insights
      • 5.1.1 Introduction
      • 5.1.2 Digital TV
      • 5.1.3 Cable TV
      • 5.1.4 HDTV
      • 5.1.5 IPTV revolution
      • 5.1.6 The Smart or Connected TV
      • 5.1.7 ITU IPTV standard
    • 5.2 Australia - IPTV - Market Overview
      • 5.2.1 Introduction
      • 5.2.2 The first ten years
      • 5.2.3 The next revolution in IPTV
      • 5.2.4 Market surveys
      • 5.2.5 Optus and the copyright issue
      • 5.2.6 Regulations and standards
      • 5.2.7 Social TV – peer -to-peer content distribution
      • 5.2.8 Social networks
    • 5.3 Australia - IPTV - Major Players
      • 5.3.1 Introduction
      • 5.3.2 Australian Broadcasting Corporation (ABC)
      • 5.3.3 BBC iPlayer
      • 5.3.4 FetchTV
      • 5.3.5 FOXTEL
      • 5.3.6 Google TV
      • 5.3.7 Hoyts stream
      • 5.3.8 Hulu
      • 5.3.9 iiNet
      • 5.3.10 Netbay
      • 5.3.11 Netflix heading Down Under?
      • 5.3.12 Ninemsn (MI9)
      • 5.3.13 Optus TV
      • 5.3.14 Quickflix
      • 5.3.15 Special Broadcasting Service (SBS)
      • 5.3.16 Seven Network
      • 5.3.17 Tabcorp
      • 5.3.18 Telstra BigPond Media
      • 5.3.19 Ten Network
      • 5.3.20 TPG
      • 5.3.21 TransACT
      • 5.3.22 VOD Pty Ltd
      • 5.3.23 IPTV for remote mining sites
  • 6. Radio
    • 6.1 Overview and Statistics
      • 6.1.1 Market overview
      • 6.1.2 Major players
      • 6.1.3 Digital media developments
      • 6.1.4 Brief history of radio broadcasting
    • 6.2 Digital Radio
      • 6.2.1 Market overview
      • 6.2.2 Market analysis
      • Table 1 – Household conversion to digital TV – 2009 - 2012
      • Table 2 – Australian media market – revenue by industry – 2007 - 2012
      • Table 3 – Australian media market – annual growth by industry – 2008 - 2012
      • Table 4 – Australian media market – by industry share – 2007 - 2011
      • Table 5 – Television set penetration by number of sets – 2010 - 2012
      • Table 6 – Australian advertising spend in Pay TV and FTA sectors – 2010; 2014
      • Table 7 – Australian advertising spend by industry – 2010; 2014
      • Table 8 – Australian advertising production by network – 2007 - 2011
      • Table 9 – Australian content between 0600-2400 – 2008 - 2011
      • Table 10 – Number of television and radio licences on issue – 2010 - 2012
      • Table 11 – SBS key financial performance results overview – 2009 - 2012
      • Table 12 – Seven West key financial performance results overview – H1 2012 – H1 2013
      • Table 13 – PRIME key financial performance results overview – 2010 - 2012
      • Table 14 – Household conversion to digital TV – 2009 - 2012
      • Table 15 – Total plasma, LCD digital TV sales and annual change – 2003 - 2011
      • Table 16 – Percentage of digital TV households by region – 2009 - 2012
      • Table 17 – Media centre penetration forecasts – Australia – 2005; 2007; 2010; 2015
      • Table 18 – Estimated DVR subscribers – total market – pay TV and FTA TV – 2006 - 2012
      • Table 19 – Telstra T-Box sales – 2010 - 2012
      • Table 20 – Estimated DVR subscribers – by major provider – 2006 - 2013
      • Table 21 – Pay TV subscribers by major operator – 2000 - 2013
      • Table 22 – Pay TV subscribers – annual change by major operator – 1997 - 2013
      • Table 23 – Pay TV household penetration rates – 1997 - 2013
      • Table 24 – Forecast pay TV household penetration – lower market growth scenario – 2012 - 2015; 2020
      • Table 25 – Forecast pay TV household penetration – higher market growth scenario – 2012 - 2015; 2020
      • Table 26 – Pay TV revenue by major operator – 1997 - 2013
      • Table 27 – Percentage change of pay TV revenue by major operator – 1998 - 2013
      • Table 28 – Subscription TV advertising revenue and annual change – 2000 - 2013
      • Exhibit 14 – Pay TV is now profitable – historic overview
      • Table 29 – Net losses pay TV industry (historic) – 1996 - 2010
      • Table 30 – ARPU levels per operator AUSTAR versus FOXTEL – 1999/2002; 2003 - 2012
      • Table 31 – Pay TV industry annual churn rates – 1996 - 2012
      • Table 32 – Pay TV rollout statistics (homes passed) (historic) – 1996 - 1998; 2002 - 2008
      • Table 33 – Total FOXTEL and wholesale subscribers – 2002 - 2013
      • Table 34 – FOXTEL and wholesale subscribers by annual change – 2003 - 2013
      • Table 35 – Subscriber annual churn rate – 2002 - 2013
      • Table 36 – FOXTEL subscribers by type – 2008 - 2012
      • Table 37 – FOXTEL key financial performance snapshot – H1 2012 - H12013
      • Table 38 – FOXTEL key financial performance indicators– 2008 - 2012
      • Table 39 – FOXTEL yearly and monthly ARPU – 2003 - 2012
      • Table 40 – AUSTAR key operating and financial figures – 2009 - 2012
      • Table 41 – FOXTEL on-demand pricing – 2011 - 2013
      • Table 42 – Worldwide digital TV households – 2009; 2011; 2013
      • Table 43 – Worldwide digital TV penetration rate – 2006; 2009; 2012; 2016
      • Table 44 – Worldwide number of HDTV households – 2009; 2012; 2015
      • Table 45 – Worldwide IPTV subscribers – 2010; 2012; 2014
      • Table 46 – Worldwide IPTV subscribers – 2010; 2012; 2014
      • Table 47 – Estimated video streams by selected providers – 2008 - 2011
      • Table 48 – Quickflix – key performance indicators – 2008 - 2012
      • Table 49 – Quickflix – annual change of key performance indicators – 2009 - 2012
      • Table 50 – Radio advertising revenue trends by metropolitan city – 2009 - 2013
      • Table 51 – Estimated metropolitan radio listeners and usage – 2008 - 2012
      • Table 52 – Number of commercial and government radio stations – 2012
      • Table 53 – Number of commercial radio services by city – 2012
      • Table 54 – Macquarie Radio Network key financial performance indicators – 2010 - 2013
      • Table 55 – Southern Cross Austereo key financial performance indicators – 2009 - 2013
      • Table 56 – Estimated size of digital radio listening audience – 2009 - 2013
      • Table 57 – Estimated sales of digital radios – 2009 - 2013
      • Chart 1 – Overview of Australian advertising spend by industry – 2010; 2014
      • Chart 2 – Overview of Australian advertising production by network – 2007 - 2011
      • Chart 3 – Overview of Australian content measurement between 0600-2400 – 2007 - 2011
      • Chart 4 – Overview of Prime share trending – 2012 - 2013
      • Chart 5 – Overview of overall household conversion to digital TV – 2009 - 2012
      • Chart 6 – Overview of plasma versus LCD digital TV sales and annual change – 2003 - 2011
      • Chart 7 – Overview of estimated DVR subscribers by major provider – 2006 - 2013
      • Chart 8 – Overview of market share of DVR subscribers by major operator – 2012
      • Chart 9 – Overview of pay TV subscribers by major operator – 2004 - 2013
      • Chart 10 – Overview of pay TV household penetration rate – 2004 - 2013
      • Chart 11 – Overview of forecast of pay TV household penetration – lower market growth scenario – 2012 - 2015; 2020
      • Chart 12 – Overview of forecast of pay TV household penetration – higher market growth scenario – 2012 - 2015; 2020
      • Chart 13 – Overview of pay TV revenue by major operator – 2004 - 2013
      • Chart 14 – Overview of subscription TV advertising revenue – 2004 - 2013
      • Chart 15 – Overview of STV ad revenue total revenue versus subscription revenue – 2004 - 2013
      • Chart 16 – Overview of ARPU levels – AUSTAR versus FOXTEL – 2003 - 2012
      • Chart 17 – Overview of FOXTEL iQ DVR subscribers and annual change – 2006 - 2012
      • Chart 18 – Overview of FOXTEL HD package subscribers and annual change – 2008 -2013
      • Chart 19 – Overview of FOXTEL revenue and annual change – 2003 - 2012
      • Chart 20 – Overview of Quickflix long-term share trending – 2005 - 2013
      • Chart 21 – Overview of share price Quickflix – 2011 - 2013
      • Chart 22 – Overview of radio advertising revenue trends by metropolitan city – 2007 - 2013
      • Chart 23 – Overview of estimated metropolitan radio listeners – 2007 - 2012
      • Chart 24 – Overview of Southern Cross Austereo key financial performance indicators – 2009 - 2013
      • Chart 25 – Overview of digital radio sales versus listeners – 2009 - 2013
      • Exhibit 1 – Key performance indicators of the broadcasting, STV and IPTV markets – 2012
      • Exhibit 2 – Commercial television licences
      • Exhibit 3 – Nine Network coverage
      • Exhibit 4 – Background information on PRIME New Zealand
      • Exhibit 5 – Brief background history on the Southern Cross Broadcasting company
      • Exhibit 6 – Digital community television licences – 2010 - 2013
      • Exhibit 7 – Background information on community television licences
      • Exhibit 8 – Overview of analogue switch off to digital by regional and metropolitan area
      • Exhibit 9 – Some self-help retransmission sites still maybe converted from analogue to digital
      • Exhibit 10 – Televisions, computers and their hazardous inventory of e-waste
      • Exhibit 11 – FOXTEL and the T-Box
      • Exhibit 12 – TiVo background information
      • Exhibit 13 – Overview of new media activities from pay TV operators – 2013
      • Exhibit 15 – Pay TV rollouts by state
      • Exhibit 16 – FOXTEL at a glance – 2013
      • Exhibit 17 – AUSTAR brief company history – 1994 - 2012
      • Exhibit 18 – Set-Top Boxes (STBs)
      • Exhibit 19 – Changing TV behaviour
      • Exhibit 20 – Historical overview - HDTV
      • Exhibit 21 – Examples of top IPTV carriers worldwide
      • Exhibit 22 – ITU IPTV standards development
      • Exhibit 23 – Case studies similar to the Optus copyright issue case
      • Exhibit 24 – Quickflix at a glance – 2012
      • Exhibit 25 – Seven Network’s digital media strategies – 2006 - 2012
      • Exhibit 26 – Estimated number of radios and listening habits
      • Exhibit 27 – DMG’s full list of radio stations – 2013
      • Exhibit 28 – Grant Broadcasters radio stations – 2013
      • Exhibit 29 – Austereo national networks
      • Exhibit 30 – Timeline of music on the internet – 1984 - 2013

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Annual Publication Profile

Technologies

Broadcasting
Regulations & Government Policies
Strategies & Analyses (Industry & Markets)

Number of pages 150

Status Archived

Last updated 11 Mar 2013
Update History

Analyst: Paul Budde

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