Report: Subscription spend up following 2021 pandemic

Australians are now managing 6.5 premium subscriptions from a selection of over 100 currently available across video-on-demand, audio, news and lifestyle content, gaming and other sources of entertainment, according new research.

In 2021, Australians spent more on entertainment, media and internet access services than ever before, PricewaterhouseCoopers claims in the 21st edition of its outlook on the Australian entertainment and media industry.

Supercharged by subscription services and gaming, and boosted by the return of in-person entertainment, by the end of 2022 each household will be spending A$512 more per year than in 2019 before the pandemic hit.

This was despite being a period when in many parts of the economy it was reported that discretionary consumer spending was being held. It is expected a further A$712 per household per year, or A$7.2 billion, in consumer spend will be on the table for entertainment, media and internet access companies to challenge for.

2021 was a year of unprecedented growth in the E&M sector with consumer spending up 6.23 percent from the prior
year reaching A$45.6 billion. The highest single year leap in the history of the E&M Outlook. The largest contributor to consumer spending remains internet accessfollowed by Games and Subscription TV which made up nearly 60 percent of the remaining A$14.0 billion, both of which are expected to see significant continued growth through the forecast period.

Where the initial wave of the pandemic may have been characterised by households reigning in spend, coupled with
the inability to visit in-person entertainment, the second wave into 2021 saw consumers turn to entertainment and media to help alleviate the boredom of extended lockdowns with a more confident approach to spending. Moreover as in person events return this spending is likely to extend alongside habits around subscriptions, gaming and access to content likely to stick.

PwC Australia director and Australian entertainment and media outlook editor Dan Robins said, “Where the initial wave of the pandemic may have been characterised by households reigning in spend, coupled with the inability to visit in-person entertainment, the second wave into 2021 saw consumers turn to entertainment and media to help alleviate the boredom of extended lockdowns with a more confident approach to spending.

“Moreover, as in-person events return, this spending is likely to extend alongside habits around subscriptions, gaming and access to content likely to stick. It was broadly believed consumers were stockpiling savings and consumer spending may have been down, given that in-person events are still only steadily returning and crowds returning through late 2021 and into 2022, this is certainly not the case.

“Digitised entertainment and media has entwined itself in our daily lives, and people are consuming content across more devices, at all times of the day, in all types of places,” Robins added.