Australia - Digital Media - Video Streaming - Major Players

Attention: There is an updated edition available for this report.

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 have all now 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 video streaming 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 a substantial content offering and now also a range of IPTV models. Telstra has abandoned its proprietary T-Box and in April 2015 introduced a new set-top box. The other telcos have gathered around the FetchTV 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, Australia - Digital Media - Video Streaming - Trends, Developments and Statistics, that provides market statistics, information and analyses.

Key developments:

Dendy offering Dendy Direct streaming service; Presto and Quickflix enter joint marketing agreement; Quickflix adopting a reseller SVoD business model; Quickflix raises $775,000 to improve steaming service capabilities; Apps, IPTV, VoD, video streaming, video-on-demand, video podcast, online video, DVD, Mobile TV, online streaming, user generated content, catch up TV, digital media players.

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, Hoyts, Netbay, Tabcorp, Ten Network, YouTube, Fairfax, Nine Network, Stan

1. Synopsis
2. Definitions
3. Introduction
5. Australian Broadcasting Corporation (ABC)
5.1 iView
5.1.1 ABC Kids iView
5.2 Digital online viewing
5.3 Backtracked Wikimedia Commons streaming
6. Apple TV
7. BBC iPlayer
7.1 Launched in Australia
8. FetchTV
8.1 Overview
8.2 Product offering
8.2.1 Buying TV shows and movies
8.2.2 Mobile video streaming
8.2.3 Netflix
8.3 Moving into retail
8.4 New STB to challenge Foxtel
9.1 Foxtel Play and Foxtel Go
9.2 Presto
9.3 Video on demand
9.4 The iQ3 set-top box
10. Free-to-Air TV stations
11. Getflix
12. Google
12.1 Chromecast
12.2 Android TV
13. Hulu
13.1.1 Ad blocking technology
14. iiNet
14.2 Overview
15. Netbay IPTV
16. Netflix
17. Ninemsn
17.1 (MI9)
17.2 Online, widgets and apps
17.3 Catch-up TV moving forward to FIXPLay
18. Optus TV
18.1 Optus Tv featuring FOXTEL
18.2 OptusTV with fetch
19. Quickflix
19.1 Company overview
19.2 SVoD on multiple devices.
19.3 Quickflix update 2015
19.4 Review of SVoD deals
19.5 Nine buys Quickflix stake
19.6 New Zealand
19.7 History - Reorganisation 2012/2013
20. Special Broadcasting Service (SBS)
20.1 SBS on demand via HbbTV
21. Seven Network
21.1 Overview
21.2 Seven to introduce HbbTV
22. Stan
22.1 Vodafone partnership
23. Telstra Media
23.1 Background
23.2 Telstra introducing a new STB
23.3 BigPond Movies
23.3.1 T-Box and Video on Demand
23.3.2 Foxtel on T-Box
23.3.3 DVDs
23.4 Mobile TV
23.5 BigPond Sport
23.6 BigPond TV
23.7 BigPond Music
23.8 Telstra's complex convergence strategy (historic)
24. Ten Network
24.1 Background
24.2 Content sharing, apps and sport
25. TPG
25.1 Yahoo!7 TV Plus7
25.2 Seven West Media
26. VOD Pty Ltd
27. YouTube
28. Dendy
29. Video Streaming Trends, Developments and Stats (separate report)
30. Related reports
Table 1 Total number of Fetch TV subscribers 2012 - 2015
Table 2 Hulu revenue 2009- 2013
Table 3 Average SVoD streaming speed by ISP April 2015
Table 4 Quickflix subscribers 2008 - 2014
Table 5 Telstra Media financial results 2010 - 2015
Table 6 Telstra cumulative T-Box device sales 2011 - 2014
Exhibit 1 Seven Network's digital media strategies 2006 - 2012

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