Australians are spoilt for choice when it comes to SVOD services according to a report from advisory firm PriceWaterhouseCoopers (PwC).
“The range of services available is set to continue growing over the forecast period. Launches from international heavy hitters Apple and Disney are rumoured. In the small Australian market, this level of competition will likely prompt further consolidation. Presto, a home-grown joint venture between Seven Network and Foxtel, has been an early casualty,” PwC reported.
“The dominance of Netflix cannot be ignored, with the majority of consumers taking a ‘Netflix and (other)’ approach to spending their SVOD dollars. Less clear is who will win the coming battles for the second SVOD service: will Stan, Foxtel Now, Kayo or Amazon Prime give way to Disney or Apple TV+?”
According to PwC a key question to consider if consumers’ purchase decisions are being driven by:
- the total number of services held (by individual or household), for example having a cap of no more than three services, or;
- the total dollar value spent per month, for example, spending no more than $40?
It also concluded that Netflix and Stan are on track to outstrip free-to-air television and Foxtel, with streaming services tipped to increase their subscription revenue by 13.7% between 2019 and 2023.
Foxtel is expected to experience a 2.9% drop in subscriber revenue according to PwC.