Australians paying for TV: Pay TV, IPTV, or SVOD
Source: Roy Morgan Single Source, March 2013 – August 2016, six-month samples rolling quarterly, average sample n=15,447 Australians 14+
More Australians now have SVOD in their home than linear Pay TV according to data released by Roy Morgan Research.
In the six months to August 2016, 9.8 million Australians 14+ (50%) had access to one or more types of paid TV services in their home: Subscription Video on Demand (SVOD), Pay TV (linear, broadcast Foxtel channels), and Internet Protocol Television (IPTV).
5,595,000 Australians (28%) have SVOD subscriptions including Netflix, Stan, Presto, Quickflix, Foxtel Play and YouTube Red, while 5,309,000 (27%) have linear Pay TV, it claims.
However it also found Foxtel Pay TV in the home had risen over the period too, by an average of nearly 100,000 per quarter.
629,000 Australians have IPTV which includes both Fetch and Foxtel through T-Box, up around 100,000 since the beginning of the SVOD boom.
Michele Levine, CEO, Roy Morgan Research, says: “This week, Foxtel CEO Peter Tonagh announced the Pay TV provider plans to better compete with Netflix and Stan in the blossoming Subscription Video On Demand market by both enhancing and discounting Foxtel Play. At the ASTRA subscription media conference in Sydney, he reportedly highlighted that the ‘vast majority’ of TV viewing is still ‘live and linear’—that is, watched via a broadcast—but that Foxtel knows it still needs to develop some kind of competitive foothold in SVOD.
“Roy Morgan recently reported on just this trend in the Australian television landscape. Mr Tonagh’s claim is correct, with free-to-air television reaching nine in 10 Australians. However our latest research shows that, when it comes to paying for content, SVOD is already now more common than linear Foxtel.
“Foxtel’s long-term strength will, as Mr Tonagh noted, be in offering live sport and linear programming, including premium content sourced through its deal with HBO. However as more Australians choose to access content on demand, Foxtel will need to find creative ways to straddle both markets—which appeal to quite different people, with different budgets, tastes and habits.”