Australia - Digital Media - Video Streaming - Trends, Developments and Statistics

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. The global streaming revolution is gathering pace. Streaming in closing in on broadcast TV. The entry of SVOD providers Netflix, Presto TV and Stan saw rapid update of SVOD services. Rapid increase in rate of adoption of SVOD is occurring where high quality broadband is already available. NBN will accelerate this trend as the mass deployment of high quality (fibre) broadband takes place via NBN will significantly decrease cost of delivery of SVOD.

The Internet now rivals broadcast TV as a vehicle to deliver consumer content. Its shift in user behaviour continues to drive change in the TV and media industries, prompting a move away from old formats and business models and ushering in an era of high-quality, on-demand entertainment. The broadcasters have been late entering the market - their focus has been on protecting their traditional business which are under threat from declining revenues, rather than on establishing a strong foothold in the SVOD market. Amongst the existing pay TV or free-to-air subscriptions there will be increased pressure on profitability as competition for content pushes up the cost of licensing. One of the few options left for broadcasters (and other traditional media companies) is to merge, in order to cut costs and increase their customer base.

In addition to Free-to-Air TV, pay TV is also under increasing structural pressure from SVOD providers such as Netflix. Fetch TV is emerging as a strong competitor to the incumbent Foxtel. Slowly but surely the NBN is being rolled out and this is something that also benefits Fetch, whose services are delivered via broadband. This distribution media supplies a great opportunity to offer an alternative to Australia’s leading pay TV service Foxtel.

With such a large number national and international players competing consolidation is starting to take place. Quickflix has been forced to exit the market in 2016, followed by Foxtel’s Presto service later on in that year. BuddeComm predicts that the rate of SVOD growth moving into 2018 and 2019 will begin to taper off and eventually level off in around five years time.

Companies mentioned in this report:

Telstra, Optus, FetchTV, Bigpond, Google, Apple, iiNet, ABC, Netflix, Foxtel, NBN Co, Quickflix, Hulu

Table of Contents

  • 1. Synopsis
  • 2. Introduction
  • 3. Definitions
  • 4. Impact of SVOD on traditional TV
    • 4.1 Overview
    • 4.2 Catch-up TV
    • 4.3 Opportunities for Broadcasters
  • 5. Impact of SVOD on the Pay TV Market
  • 6. SVOD Market Sizing and Subscribers
    • 6.1 Overall Market
    • 6.2 Subscribers and Pricing by Provider
    • 6.3 Forecasts and Future Trends
  • 7. Inhibitors to SVOD Market Growth
    • 7.1 Introduction
    • 7.2 Restricted bandwidth / Access Speed
    • 7.3 Lack of Differentiation of Product Offerings
    • 7.4 Copyright and content issues
  • 8. Global Trends
    • 8.1 Lack of success of telcos Globally
    • 8.2 Rise of SVOD has accelerated uptake of video
  • 9. SVOD Market Trends
    • 9.1 Growing Market Competition
    • 9.2 Consolidation of Australian SVOD Market
    • 9.3 Impact of SVOD on Telco Market
      • 9.3.1 Growing Importance of Partnerships
      • 9.3.2 Increasing pressure on Network Delivery
      • 9.3.3 Other Platforms
    • 9.4 Competition from Second Tier Market
  • 10. Consumer Usage Trends
    • 10.1 Consumers Using Multiple SVOD Providers
    • 10.2 Market Surveys - 2016
    • 10.3 Smartphone VOD viewing
  • 11. Market Analysis
    • 11.1 The remarkable story of Fetch
    • 11.2 Rapid recent uptake in SVOD in Australia
    • 11.3 Is the IPTV market ready for consolidation?
  • 12. Other Market Research Studies and surveys
    • 12.1 SVOD Market Usage Survey
    • 12.2 SVOD Market Forecast
    • 12.3 Multi-Screen Market Study show broadcast TV viewing in on the decline
    • 12.4 Programmatic Advertising Market Trends
    • 12.5 VOD sport viewing Patterns
  • 13. Related reports
  • Table 1 – Forecast - Television households and subscriptions in Australia – 2014 - 2019

Related Reports

Focus Report Profile

Technologies

Broadcasting
Digital Media
Internet

Number of pages 15

Status Current

Last updated 16 May 2017
Update History

Analyst: Phil Harpur

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