Report: 43% of homes subscribe to SVOD

An estimated 43% of Australian households subscribed to SVOD services at the end of June 2018, an increase from about 30% a year ago, according to a new report.

This compares with roughly 70% in the US and 60% in the UK.

Telsyte estimates Netflix had about 3.9 million Australian subscribers with Stan passing the 1 million mark at the end of June. Late to market Amazon’s Prime Video streaming service has so far failed to make much headway in the Australian market.

Pay TV numbers have remained reasonably steady in the past year at about a third of Australian households subscribed at the end of June 2018, although this is likely to include Foxtel Now numbers.

The Australian Financial Review reports the research firm compiles its figures from a combination of online surveys with viewers, interviews with executives from service providers, network operators, content providers, retailers, and hardware manufacturers and streaming company reports.

Telsyte estimate more than 2 million Australians tuned in to the FIFA World Cup in June 2018 via Optus Sport, despite its playout problems.

6 Comments:

  1. I am surprised that this figure is so low. Comments here regularly proclaim that FTA is dead and that SVOD/pay tv is being used by “everyone”. I think it purely shows that subscribers are more vocal and more engaged in talking about tv.

    • I suspect there’s also a fair contingent who both aren’t watching FTA and aren’t SVOD subscribers (at least, of the paid non-broadcaster type that were counted in the Telsyte report). In fact, the report mentions that people using what they call “Broadcaster VOD” services (i.e. the Freeview streaming services) still currently outnumber SVOD subscribers.

      Outside of the paid SVOD services they’re counting, I suspect it goes something like SBS OD, tenplay/9Now/7Plus, ABC iView, and … ahem, “other sources”. In order of increasing number of users…

    • I would say that FTA channels will have little choice but to invest more into SVOD out of competitive commercial necessity than anything else, especially if the major networks prime time viewing continues to rely on the ratings of trendy Reality TV and games shows to bring in the advertising revenue,the viewers lost who are looking for more content diversity need to be regained again.

  2. Funny how the News Limited version of the article says Stan with 1 million users is trying to “catch up with streaming giants Foxtel and Netflix, which has about 3.9 million Australian subscribers, according to research firm Telsyte.”
    There is no mention of “Foxtel” as a “streaming giant” in the AFR article…. I think the News Limited article is trying to make Foxtel look good. How many streaming users do they actually have?

    news.com.au/finance/business/media/media-experts-say-stan-is-vital-for-success-of-new-4b-merger/news-story/872454366c1196b66a6c1977486dadbc

  3. I would imagine that sport is the primary reason why subscribers stick with set top boxes (satellite) though sports coverage is increasing on SVOD especially overseas with trials of 4K HDR by the BBC. Foxtel Now will need to upgrade it’s Sports to HD at least to pick up it’s numbers though I suspect that recent content promotions are doing their job, interestingly Netflix’s rate of new subscribers has not matched market anticipation recently so with Disney merging with Fox and about to enter the SVOD market viewers will be saturated with content. How the TV manufacturers will handle including these apps much like they do with Netflix, Amazon and Stan will be a future issue as will competitive pricing.

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