More than half of Australian households subscribe to SVOD | VOD | News | Rapid TV News
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Australians’ growing taste for sports and video entertainment content has sent the country’s subscription video-on-demand (SVOD) market to new heights according to research from Telsyte.
Telsyte AUstralia SVOD 19Aug2019
The Telsyte Australian Entertainment Subscription Study 2019 calculated that the market reached 12.3 million total subscriptions by the end of June 2019, growing 29% year-on-year. This means that more than half (55%) of Australian households subscribe to SVOD services.

One key aspect of the territory is that households continue to show a demand for multiple services, with 43% having more than one SVOD service, up from 30% in 2018. This said the analyst has steadily been increasing as consumers turn to multiple providers that are battling it out for content rights.

In terms of the key players, Netflix was found to be the market leader with around 4.9 million subscriptions and local provider Stan passed the 1.7 million mark at the end of June 2019, remaining the second largest single service provider.

Driven by adoption of Kayo Sport, Optus Sport and AFL, FFA, Netball and NRL Live passes via Telstra, the sports SVOD category continued to see strong demand. Telsyte estimates the total sports SVOD category —excluding Foxtel Now as it provides a mix of sports and other entertainment content — had around 4.4 million subscriptions at the end of June 2019, up from 3.6 million in June 18, driven by new services and telecom services bundles.

The report also found that the total pay-TV market in Australia racked up just over 3 million subscriptions at the end of June 2019, including cable, satellite and IPTV from Fetch TV. It noted that Foxtel’s pay-TV segment has been under continued pressure due to increasing adoption of SVOD, including its own base shifting to Foxtel Now and Kayo Sport. Fetch TV remained the growth engine for the pay-TV market.

A third of Australians had no set limit to the number of paid video subscription services they would simultaneously subscribe.
Nearly half of existing SVOD users believe there will always be enough new content to keep them interested and will not cancel their service, regardless of how many hit TV shows the service has to offer. Telsyte revealed that the increase in demand for services was matched by a commensurate willingness to pay for video subscription services. Such people had an average monthly budget of around $30 to cover all their video entertainment needs.

“Subscriptions will be a critical way entertainment and technology brands connect with and monetise their customers,” noted Telsyte managing director Foad Fadaghi.

Looking forward, the analyst forecast that total SVOD subscriptions could reach more than 21 million by the end of June 2023 to meet Australians’ appetite for content. Telsyte expects the demand of existing and new SVOD services to be driven by key content rights during the next 12 to 24 months as more studios and content producers prepare to launch direct services. Telsyte found that a quarter of all Australians, and 37% of existing SVOD users, were interested in subscribing to the forthcoming Disney DTC service.