SVOD take-up records 30% hike in Australia | VOD | News | Rapid TV News
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Premium subscription video-on-demand (SVOD) services have increased their total subscription base in Australia by 30% to 3.7 million in the year ending June 2017, according to new research.

ozvod 9august2017Almost half (49%) of Australian households now subscribe to either pay-TV or SVOD services, up from 38% in 2015, according to Telsyte’s Australian SVOD Market Study 2017. Researchers found just 11% of households currently subscribe to both pay-TV and SVOD services.

As consumers continue to watch an increasing amount of on-demand content across multiple devices, paid SVOD subscriptions are expected to overtake the number of pay-TV customers by June 2018, Telesyte researchers predict.

“Popularity of exclusive and original content, as well as live streaming, is expected to continue to drive the market to 2021 when subscriptions are expected to exceed six million [for paid and non-paid subscriptions],” Telsyte said.

Analysts added that “consumers will consider multiple providers, leaving room for services from Stan, Amazon, YouTube Red, Foxtel, Optus Sport, and a long list of others to encroach on Netflix’s market leadership”.

Netflix exceeded two million Australian subscriptions at the end of June 2017, with Stan in second with 867,000, and others making up 769,000 subscribers, according to Telesyte estimates. Researchers found about a third of pay-TV subscribers also had at least one SVOD subscription, and 46% of SVOD subscribers said they “rarely” watched free-to-air TV.

The average SVOD subscriber watches nearly 26 hours of video content a week across free-to-air TV, pay-TV, SVOD, catch-up TV and live streamed TV over-the-top (OTT), and other video content sources, compared to around 21 hours for the average Australian, according to Telesyte. “SVOD adoption in Australia has started to reach a scale which has strategic significance to media and telecoms companies alike,” said Foad Fadaghi, managing director, Telsyte.

The popularity of exclusive and original content, as well as live streaming, will help drive the market to exceed six million subscriptions by 2021, according to the study. In addition, Telsyte said unlimited data services on Australia’s broadband network nbn and increases in mobile data caps are fuelling SVOD adoption.

On average, Telsyte claims SVOD subscribers typically use 61% more mobile data (3G/4G) than those who do not stream SVOD on smartphones. At the end of 2016, the rate of uptake of SVOD by nbn users was 25% higher than those who did not use nbn.

“SVOD bundling is an important loyalty driver when mobile and broadband prices are under pressure,” said Telsyte senior analyst Alvin Lee.