Australia - Digital Media - IPTV - Major Players

Australia - Digital Media - IPTV - Major Players

Streaming video or IPTV has been under development since the early 00s, as higher speed broadband services slowly became available. At that stage it was seen by the telcos as an opportunity to compete with the cable TV operators who started to enter the broadband market at the same time. However, while the cable TV operators have been very successful in entering the broadband market internationally, the telcos have been rather spectacularly unsuccessful in entering the video entertainment market.

There are several reasons for that and these include: their reluctance to upgrade their infrastructure for the delivery of high-speed services; their vertically-integrated model, which made those services too expensive for consumers; and the stranglehold the broadcasters have on video entertainment content.

The industry muddled along for a decade, but changes started to happen when new players in the American market were able to break through those various obstacles. Netflix and Hulu were able to use the broadband technology and break into the content market and this created a degree of urgency among telcos and broadcasters alike to abandon their restrictive practices (costs and content). They all now have more or less adopted the Netflix pricing model of around $10 a month.

In the meantime catch-up TV has also become a major part of IPTV. The ABC was the early leader here but all commercial stations and the SBS now have their own on-demand' service.

Quickflix was the first IPTV player in the Australian market to offer movies; however it was perhaps too early and experienced major setbacks. The key player in this market remains Foxtel the traditional cable or pay TV operator with the best content offering and now also a range of IPTV models. Telstra has abandoned its proprietary T-Box and will introduce a new set-top box in 2015. The other telcos have gathered around the Fetch TV service. The traditional media and broadcasting companies have also formed their own alliances and entered the market.

In the longer term there will not be room for all of them. With each having a different set-top box fragmentation will hamper growth. As the video content market is an international one it will be interesting to see which of the local players will be able to survive in the longer term. It is all about content, and Netflix's international buying power will be difficult to beat.

There is a separate report that provides market statistics, information and analyses.

Key developments:Apps, IPTV, VoD, streaming video, video-on-demand, video podcast, online video, DVD, Mobile TV, online streaming.

Companies mentioned:

Telstra, Optus, Internode, TransACT, TPG, engin, FOXTEL, VOD, Quickflix, Netflix, ABC, Ninemsn, Yahoo!7TV, Hulu, iiNet, SBS, Seven Media, AARNet, Apple, BBC, FetchTV, Getflix, Google TV, Hoyts, Netbay, Tabcorp, Ten Network, YouTube

1. Synopsis
2. Introduction
4. Australian Broadcasting Corporation (ABC)
4.1 iView
4.1.1 ABC Kids iView
4.2 Digital online viewing
4.3 Backtracked Wikimedia Commons streaming
5. Apple TV
6. BBC iPlayer
6.1 Launched in Australia
7. FetchTV
7.1 Overview
7.2 Product offering
7.2.1 Mobile TV
7.2.2 Netflix
7.3 Moving into retail
7.4 New STB to challenge Foxtel
8.1 Foxtel Play and Foxtel Go
8.2 Presto
8.3 Video on demand
8.4 The iQ3 set-top box
9. Free-to-Air TV stations
10. Getflix
11. Google
11.1 Chromecast
11.2 Android TV
12. Hulu
12.1.1 Ad blocking technology
13. iiNet
13.2 Overview
14. Netbay IPTV
15. Netflix
16. Ninemsn
16.1 (MI9)
16.2 Online, widgets and apps
16.3 Catch-up TV moving forward to FIXPLay
17. Optus TV
17.1 Optus Tv featuring FOXTEL
17.2 OptusTV with fetch
18. Quickflix
18.1 Company overview
18.2 SVOD on multiple devices.
18.3 Quickflix update 2014
18.4 Nine buys Quickflix stake
18.5 New Zealand
18.6 History - Reorganisation 2012/2013
19. Special Broadcasting Service (SBS)
19.1 SBS on demand via HbbTV
20. Seven Network
20.1 Overview
20.2 Seven to introduce HbbTV
21. Stan
21.1 Vodafone partnership
22. Telstra Media
22.1 Background
22.2 Telstra introducing a new STB
22.3 BigPond Movies
22.3.1 T-Box and Video on Demand
22.3.2 Foxtel on T-Box
22.3.3 DVDs
22.4 Mobile TV
22.5 BigPond Sport
22.6 BigPond TV
22.7 BigPond Music
22.8 Telstra's complex convergence strategy (historic)
23. Ten Network
23.1 Background
23.2 Content sharing, apps and sport
24. TPG
24.1 Yahoo!7 TV Plus7
24.2 Seven West Media
25. VOD Pty Ltd
26. YouTube
27. IPTV market overview (separate report)
28. Related reports
Table 1 Fetch TV subscribers 2012 - 2015
Table 2 Hulu revenue 2009- 2013
Table 3 Quickflix subscribers 2008 - 2014
Table 1 Telstra Media financial results 2010 - 2015
Table 2 Telstra cumulative T-Box device sales 2011 - 2014
Exhibit 1 Seven Network's digital media strategies 2006 - 2012

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