Press release
Australia Video on Demand, Free-to-Air TV, Pay TV and Digital Media Market - Overview, Statistics and Opportunities
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. The Internet now rivals broadcast TV as a vehicle to deliver consumer content. Their 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.
Streaming is closing in on broadcast TV. A rapid increase in the rate of adoption of SVOD is occurring where high-quality broadband is already available. The NBN is accelerating this trend and as the mass deployment of high quality broadband takes place via it there will be a significant decrease in the cost of SVOD.
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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. With such a large number national and international players competing consolidation is starting to take place. Quickflix has been forced to exit the market, followed by Foxtel’s Presto service later on in the same year.
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 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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Key Developments
Netflix has emerged as the SVOD dominant operator, but both Stan and Presto have built up a significant customer base.
FOXTEL during the last few years has struggled to increase pay TV penetration in Australia.
The rate of SVOD growth moving into 2019 will begin to taper off and eventually level off in around five years’ time in 2023.
Key companies mentioned in this report:
Telstra, Optus, FetchTV, Bigpond, Google, Apple, ABC, Netflix, Foxtel, NBN Co, Hulu, Stan, AUSTAR, FOXTEL, TransACT, SelecTV, Telstra, TV Plus, Presto TV, Stan, Australian Broadcasting Corporation (ABC), Special Broadcasting Service (SBS), Seven West, Nine Entertainment, TEN, Free TV.
Table of Contents
1. Video streaming market
1.1 Market Analysis
1.2 Definitions
1.3 Impact of SVOD on traditional TV
1.3.1 Overview
1.3.2 Catch-up TV
1.3.3 Opportunities for Broadcasters
1.4 Impact of SVOD on the Pay TV Market
1.5 VOD Subscribers and Usage Statistics
1.5.1 2018 Statistics
1.5.2 2017 Statistics
1.5.3 2016 Statistics
1.5.4 Subscribers and Pricing by Provider
1.5.5 Forecasts and Future Trends
1.6 Inhibitors to SVOD Market Growth
1.6.1 Introduction
1.6.2 Restricted bandwidth / Access Speed
1.6.3 Lack of Differentiation of Product Offerings
1.6.4 Copyright and content issues
1.7 Major VOD Providers
1.7.1 Netflix
1.7.2 Stan
1.7.3 Foxtel
1.7.4 Telstra TV
1.7.5 Vodafone
1.7.6 FetchTV
1.7.7 Hayu
1.7.8 Hulu
1.8 Global Trends
1.8.1 Lack of success of telcos Globally
1.8.2 Rise of SVOD has accelerated uptake of video
1.9 SVOD Market Trends
1.9.1 Growing Market Competition
1.9.2 Consolidation of Australian SVOD Market
1.9.3 Impact of SVOD on Telco Market
1.9.4 Competition from Second Tier Market
1.10 Market Analysis
1.10.1 The remarkable story of Fetch
1.10.2 Rapid recent uptake in SVOD in Australia
1.10.3 Is the IPTV market ready for consolidation?
1.11 Other Market Research Studies and surveys
1.11.1 SVOD Market Forecast
1.11.2 Multi-Screen Market Study show broadcast TV viewing in on the decline
1.11.3 Programmatic Advertising Market Trends
1.11.4 VOD sport viewing Patterns
2. Pay TV market
2.1 Subscriber statistics
2.2 Consumer penetration statistics
2.3 Usage Statistics – 2016 - 2017
2.4 Revenue statistics
2.5 Advertising revenue
2.6 ARPU and Churn Statistics
2.7 Infrastructure statistics and Availability
2.8 Major Players
2.8.1 Market overview
2.8.2 FOXTEL
2.9 Industry and market analysis
2.9.1 Market trends in 2017
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3. Free-to-Air TV Market
3.1 Trends and analysis
3.2 Impact of SVOD on traditional TV
3.3 Major FTA Providers
3.4 Usage Statistics – 2017 - 2018
3.5 Usage Statistics – 2015 - 2016
3.6 Advertising market statistics
4. Digital Media - Apps and Services
4.1 Mobile internet advertising
4.1.1 Background
4.1.2 Mobile ads in exchange for discounts
4.2 Over-The-Top (OTT) Communication Tools
4.3 General Usage Trends
4.4 App Usage Trends
4.5 The rise of the Access Economy
4.6 Key Social Network Providers
4.6.1 Statistics
4.6.2 Facebook
4.6.3 LinkedIn
4.6.4 Twitter
4.6.5 Instagram
4.7 Social Networks – Global Trends
4.7.1 Adult services
4.7.2 Online dating
4.8 Social Media Trends – Consumer Segment
4.8.1 Usage Trends – 2017
4.8.2 Sensis Social Media Report 2016
4.8.3 Sensis Social Media Report 2015
4.9 Social Network Trends – Business Segment
4.10 Video Game Market - Industry developments
4.10.1 Industry review 2015 – 2016
4.10.2 The Video Game market in 2016
4.10.3 The Video Game market in 2015
4.10.4 Game classification
4.10.5 Gaming targeted by DDoS attacks
4.11 Online Shopping
4.12 Online Music
4.13 Online News
4.14 Video Game Market surveys
4.14.1 Statistical Overview of the Market
4.15 Mobile gaming
4.15.1 Mobile gaming
4.15.2 Global trends
4.15.3 Tabcorp betting via mobile devices
4.16 Online gambling
4.16.1 Statistics
4.16.2 Online Sports betting - 2015
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