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

  • April 2017
  • -
  • Paul Budde Communication Pty Ltd
  • -
  • 30 pages

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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. Mass deployment of high quality (fibre) broadband is taking place via NBN and this will significantly decrease cost of delivery of VOD. 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. For example Quickflix has been forced to exit the market in 2016. BuddeComm predicts that the rate of SVOD growth 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

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