Australia - Digital Economy and Digital Media

Synopsis

There are two major categories of paid online video content: Pay-per-view video-on-demand (PVOD) and subscription video-on-demand (SVOD) services. SVOD has emerged as the major category of paid online content in Australia.

Streaming is closing in on broadcast TV. There is a rapid increase in the rate of adoption of SVOD occurring where high-quality broadband is already available. The growth in the uptake of catch up and live traditional TV streaming services had slowed down, with SVOD penetration on track to overtake it. The NBN is accelerating this trend as the mass deployment of high-quality broadband takes place and will significantly decrease the cost of delivery of SVOD.

Netflix has emerged as the SVOD dominant operator, but both Stan and Presto have built up a significant customer base, and both have the substantial financial resources of their backers at their disposal.

FOXTEL during the last few years has struggled to increase pay TV penetration in Australia. Viewing habits have also been affected by the advent of catch-up TV services, which are available from the main broadcasters. In addition, subscription video services from VOD operators such as Stan and Netflix are further eroding live TV viewing as subscribers choose instead to watch programs at a time of their choosing.

Also the distribution advantage held by FOXTEL is slipping away as the NBN becomes built out over a greater number of premises, so expanding the reach of capable broadband infrastructure which enables subscribers to access OTT and IPTV content. These changing market conditions are impacting both the FTA and pay TV industries.

With the move towards 5G well and truly underway it is important to look at what will be the value of IoT infrastructure to the development of a network that will be dominated by sensors and devices.

The infrastructure that is now being built offers a range of features such as ubiquitousness, affordability, low latency, high speed and high capacity. It will link millions of devices, such as sensors, that will enable us to manage our environment, traffic, infrastructures, and our society as a whole much more efficiently and effectively.

The ‘Internet of Things’ (referring more to personal devices such as wearables and smartphones) and M2M (referring to a more industrial use based on sensors) transform every single sector of society and the economy and it will be out of this environment that new businesses – and indeed new industries – will be born. 5G will take a leadership role in the development of M2M but the NBN is also a key infrastructure element as more and applications will require high quality video. These developments are closely linked to big data, data analytics, cloud computing and data centres and these elements all play a fundamental role in the success of this new infrastructure.

Companies covered in this report:

Optus, Telstra, IBM, Vodafone, Sense-T, FetchTV, Bigpond, Google, Apple, ABC, Netflix, NBN Co, Hulu, Stan, AUSTAR, FOXTEL, Optus, TransACT,

Key Developments

  • The Australian IoT industry reached nearly $20 billion by 2020.
  • Market growth is driven by rising demands for smart devices, increasing demand for analytics, cloud platform adoption and growth of wireless networking technologies.
  • Foxtel will continue to lose ground to streaming media providers such as Netflix and Stan.

Hot topics

Internet of Things, IoT, M2M, sensors network, smart grids, smart factories, NBN, smart cities, business opportunities, sector transformation.

Table of Contents

  • Video-On-Demand (VOD) Market

    • Market analysis
    • Definitions
    • Impact of SVOD on traditional TV
      • Overview
      • Catch-up TV
      • Opportunities for broadcasters
    • Impact of SVOD on the Pay TV Market
    • VOD subscribers and usage statistics
    • Inhibitors to SVOD market growth
      • Introduction
      • Restricted bandwidth / access speed
      • Lack of differentiation of product offerings
    • Copyright and content issues
    • Major VOD providers
      • Netflix
      • Stan
      • Foxtel
    • Telstra TV
    • Vodafone
    • FetchTV
    • Hayu
    • Hulu
  • Pay TV market

    • Subscriber statistics
    • Major players
      • Market overview
      • FOXTEL
      • Products and services
  • Free-to-Air Market

    • Trends and analysis
    • Impact of SVOD on traditional TV
    • Major FTA providers
  • Internet of Things (IoT)

    • Global trends
    • Market statistics and surveys
  • Smart city projects

    • Narrowband IoT (NB-IoT) for water utilities.
    • Thinxtra
    • M4 Smart Motorway project in NSW
    • Adelaide IoT sensor project
    • LoRaWAN network in Newcastle
    • Small Satellite Project
    • IoT network – Tasmania
    • Smart Cities – Tasmania
    • Digital agriculture projects – Victoria
    • Logistics
    • South East Water – Victoria
    • Sydney Harbour Bridge – M2M monitoring
    • Sydney Water
    • RFID Materials management on massive scale
    • Vehicle tracking
    • UniSA satellite system
    • Smart water
    • Telstra
      • 5G Innovation Centre and 5G-enabled Wi-Fi hotspots
      • Narrowband IoT
      • Smart Homes
      • Telstra’s Cat 1 LTE IoT network
      • M2M strategy with Komatsu
      • Gurrowa Innovation Lab
  • E-government

  • Related reports


List of Tables

  • Table 1 – SVOD subscribers by category – 2017 - 2019
  • Table 2 – Historic - Total number of Fetch TV subscribers 2012 – 2016
  • Table 3 - Pay TV subscribers, Foxtel, others and total – 2008 – 2018
  • Table 4 – Historic - Pay TV revenue by major operator – 1997 – 2004
  • Table 5 – Historic - Pay TV revenue by major operator – 2005 – 2017
  • Table 6 – Total FOXTEL and wholesale subscribers – 2012 – 2019

Related Reports

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Licence Information

Focus Report Profile

Technologies

Broadcasting
Digital Media
Internet

Number of pages 66

Status Current

Last updated 29 Oct 2019
Update History

Analyst: Phil Harpur

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