Australia - Pay TV, Free-to-Air TV - Statistics and Analysis
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.
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 and free-to-air subscriptions there will be increased pressure on profitability as competition for content pushes up the cost of licensing.
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Hendrik Rood, Senior consultant, Stratix Consulting