Australia - Digital Media - Video Streaming - Trends, Developments and Statistics

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Australia - Digital Media - Video Streaming - Trends, Developments and Statistics

There are two major categories of paid online video content: Pay-per-view video-on-demand (PVOD) and subscription video-on-demand (SVOD) services. SVOD has emerged as the major category of paid online content in Australia. The global streaming revolution is gathering pace. Streaming in closing in on broadcast TV. The entry of SVOD providers Netflix, Presto TV and Stan in early 2005 saw rapid update of SVOD services in 2015 and 2016, especially in 2015. Rapid increase in rate of adoption of SVOD is occurring where high quality broadband is already available. NBN will accelerate this trend as the mass deployment of high quality (fibre) broadband takes place via NBN will significantly decrease cost of delivery of SVOD.

Prime time audiences for traditional television have declined almost 5 per cent in the year to 2016.The Internet now rivals broadcast TV as a vehicle to deliver consumer content. Its shift in user behaviour continues to drive change in the TV and media industries, prompting a move away from old formats and business models and ushering in an era of high-quality, on-demand entertainment. The broadcasters have been late entering the market - their focus has been on protecting their traditional business which are under threat from declining revenues, rather than on establishing a strong foothold in the SVOD market. Amongst the existing pay TV or free-to-air subscriptions there will be increased pressure on profitability as competition for content pushes up the cost of licensing. Mass deployment of high quality (fibre) broadband is taking place via NBN and this will significantly decrease cost of delivery of VOD. One of the few options left for broadcasters (and other traditional media companies) is to merge, in order to cut costs and increase their customer base.

In addition to Free-to-Air TV, pay TV is also under increasing structural pressure from SVOD providers such as Netflix. For 20 years Foxtel have charged prices that kept their customer base at around 25%, while pay TV penetration rates in Europe and the USA have been hovering above the 90% for well over a decade. It has too strongly of protecting its profitable pay TV business and was too late entering the video on demand market.

With such a large number national and international players competing consolidation is starting to take place. For example Quickflix has been forced to exit the market in 2016. BuddeComm predicts that the rate of SVOD growth will begin to taper off and eventually level off in around five years time.

Companies mentioned in this report:

Telstra, Optus, FetchTV, Bigpond, Google, Apple, iiNet, ABC, Netflix, Foxtel, NBN Co, Quickflix, Hulu

1. Synopsis
2. Introduction
3. Definitions
4. Impact of SVOD on traditional TV
4.1 Overview
4.2 Catch-up TV
4.3 Opportunities for Broadcasters
5. Impact of SVOD on the Pay TV Market
6. SVOD Market Sizing and Subscribers
6.1 Overall Market
6.2 Subscribers and Pricing by Provider
6.3 Forecasts and Future Trends
7. Inhibitors to SVOD Market Growth
7.1 Introduction
7.2 Restricted bandwidth / Access Speed
7.3 Lack of Differentiation of Product Offerings
7.4 Copyright and content issues
8. Global Trends
8.1 Lack of success of telcos Globally
8.2 Rise of SVOD has accelerated uptake of video
9. Background
10. SVOD Market Trends
10.1 Growing Market Competition
10.2 Consolidation of Australian SVOD Market
10.3 Impact of SVOD on Telco Market
10.3.1 Growing Importance of Partnerships
10.3.2 Increasing pressure on Network Delivery
10.3.3 Other Platforms
10.4 Competition from Second Tier Market
11. Consumer Usage Trends
11.1 Consumers Using Multiple SVOD Providers
11.2 Market Surveys - 2016
11.3 Smartphone VOD viewing
12. Market Analysis
12.1 Rapid recent uptake in SVOD in Australia
12.2 Streaming threat to pay TV
12.3 Legislative changes
12.4 Is the IPTV market ready for consolidation?
12.5 Broadcasting is moving to broadband
12.6 The first ten years of IPTV
12.7 Competition heating up
12.8 The next revolution in online video media
12.9 Free-to-air TV still going strong
12.10 Telstra T-Box vs. FetchTV
12.11 The content and set-top box monopoly
12.12 VR demand set to grow, but little prospect for telcos
13. Other Market Research Studies and surveys
13.1 SVOD Market Usage Survey - 2015
13.2 SVOD Market Forecast
13.3 Multi-Screen Market Study show broadcast TV viewing in on the decline
13.4 Programmatic Advertising Market Trends
13.5 VOD sport viewing Patterns  
13.6 Survey AHEDA: little impact from Netflix
13.7 Survey Nielsen: Netflix dominates Australian SVoD market
13.8 Online video services becoming main stream
13.9 Home entertainment market hits $1.11 billion
13.10 Online video market
13.11 Media consumption is shifting - Deloitte 2014
13.12 IPTV market shares
13.13 Increase in watching video on handhelds
13.14 Multiscreen viewing statistics
14. Related reports
Table 1 Forecast - Television households and subscriptions in Australia 2014 - 2019
Table 2 Online video content by service 2013-2014
Table 3 Preferred sources of entertainment
Table 4 Video content viewing behaviours

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