Free to Air advertising market
Subscription Video on Demand services such as Netflix, Stan, Foxtel Now and Amazon are the fastest-growing sectors in spending.
But it is underpinned by subscribers willing to pay for premium entertainment without advertising.
PwC’s 17th annual Australian Entertainment & Media Outlook analyses trends and consumer and advertising spend across 12 segments including Free to Air TV, SVOD, Radio, Internet, Print, Out of Home (aka Outdoor) and more.
The subscription television market is the fastest growing segment in spending, forecast to rise at a compound annual growth rate of 10.1%, trailed by the internet advertising market at 7.7%. It is predicted to reach around $6.5b in revenue by 2022.
The report also noted sporting codes and content studios are increasingly going direct to fans with niche SVOD offerings. (NBCU via hayu, Disney and ESPN etc).
Broadcasters’ catch-up services and other AVOD have grown sharply while transactional video-on-demand (TVOD) has declined
In which ways do you watch TV shows, movies, documentaries and other screen content? 2014: n = 1,593, 2017: n = 1,683 *Broadcast TV figures for 2014 excludes time shifted content.
Subscription TV consumer revenue – premium box vs SVOD
Australian entertainment and media market by sector, 2017 and 2022
PwC Australia forecast the newspaper, free-to-air television, magazine and filmed entertainment spending markets will reduce in size from 2018 to 2022.
AVOD (Advertising Video-on-Demand) will be key to finding growth for free-to-air broadcasters, offering free content with ads.
Kim Portrate, ThinkTV added, “TV isn’t dying, TV is having babies. If you look at the rich range of BVOD (broadcaster video-on-demand) and SVOD services and live-streaming, TV is healthier from a content and audience point of view than ever. It is enabling its content to be consumed by Australians across multiple devices at any time of day for the length that they choose.”
Carl Fennessy, Endemol Shine Australia said. “Broadcasters must produce brilliant content first and foremost; and continue to innovate and take risks in the way that they deliver it to their audiences. They have to continue to be creatively disruptive.”
Scott Lorson from FetchTV said, “In a new world of media options, we see a fragmentation of viewing behaviours. Using a grocery analogy, consumers visit a range of stores – the baker, butcher, fruit
& veg and a convenience store. Fetch aims to provide the equivalent of a supermarket, offering the convenience of everything they need under one roof – a set top box, a single remote and one bill.”