Report: SVOD set to overtake Pay TV

SVOD will overtake traditional Pay TV subscriptions in Australia in 2018, according to an annual study of the local SVOD market by research firm Telsyte.

The total paid uptake of SVOD services in Australia is expected to hit 3.8 million as early as June next year, overtaking the 3.3 million who pay for subscription TV services including Foxtel and Fetch.

The survey found 49 per cent of Australia households were paying for either SVOD or subscription TV, and 11 per cent have both. The study found there were 3.7 million SVOD subscriptions in June 2017, of which 78 per cent were being paid for and the rest were either complimentary or on free trials, a 30 per cent increase from the end of June 2016

The 3.8 million forecast SVOD subscriptions by mid-next year includes Foxtel’s recently relaunched streaming service Foxtel Now.

Netflix is dominating the market with a 55% share of subscriptions while Stan, which is 50-50 owned by Nine Entertainment and Fairfax Media has 24 per cent.

However in March a report by NBNco found Netflix had the lion’s share of the Australian SVOD market at 69% with Stan at a 20% share.

Source: Australian Financial Review

4 Comments:

  1. Armchair Analyst

    this is not a surprise that’s the key reason why Foxtel/Murdochs want Network TEN and anti siphoning list reduced or abolished. I have made comments on this subject before. I believe that FTA if they get there act together will be fine but Foxtel is in trouble, the sector that they are in and have had to themselves for a long time now is being challenged and is and has become more competitive, which is good for the customer. Foxtel will continue to pressure the politicians to give them a helping hand but in the long run all payed content is heading for online, apps and portable devices.

  2. Secret Squïrrel

    Those numbers differ from what was reported by Roy Morgan in September last year for Aug 2016. They had 5.6M Australians with SVOD subscriptions (Netflix, Stan, Presto, Quickflix, Foxtel Play, YouTube Red), and 5.3M with linear Pay TV.

    Either way, it doesn’t look good for Foxtel.

    • The numbers from the various surveys & claims are overall as rubbery as he** (e.g households vs individuals vs subs vs app downloads vs devices vs …) – but on the face of it they each seem sorta internally consistent (which is the minimum you’d expect from a survey, and something CRA repeatedly fails at, but I digress…).

      The interesting part of this one seems to be buried in the lede – they’re talking *paying* subscribers, & not including complementary/freebie/trial subs. It’d also be interesting to know which side they include Foxtel Go (or whatever the streaming part of the regular Foxtel sub is called now) on…

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