Australasia shows potential for broadcaster VOD | Media Analysis | Business
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Research by Ampere Analysis looking at the rise and rise of subscription video-on-demand (SVOD) in the Asia-Pac region and, in particular, in Australia and New Zealand, is advising that players need to go local in order to respond to the Netflix juggernaut.
ampere VOD Oz 9Sep2019
The analyst regards Australia as a hugely advanced market for streaming services and provides an interesting test case for the transition from traditional forms of paid TV distribution to the new and added that subscription TV homes in both Australia and New Zealand have already reached the inflection point where SVOD outstrips pay-TV: Australia reached this milestone in 2017 and New Zealand in 2018. SVOD has also surpassed pay-TV elsewhere in Asia-Pac including Thailand and Singapore - with Malaysia on the brink of achieving the turning point.

Overall, at 37%, SVOD penetration in APAC is above that of Western Europe which sits at 34%. The only Western European markets that come close in terms of SVOD outstripping pay-TV homes are Denmark, Norway and the UK.

Ampere predicts the household penetration of SVOD to reach 88% in Singapore, 64% in Australia and 42% in New Zealand by the end of 2019. This makes Singapore the country with the highest household SVOD penetration globally, followed by Norway, USA, Denmark and Australia in fifth place at 64%.

In the Australian market, almost half (49%) of those with SVOD at home subscribe to one service, one third (31%) subscribe to two services, and 21% take three. The number of households with three or more services increased from 13% in Q3 2017 to 21% by Q1 2019 – a large growth rate in under two years.

Netflix is the most common SVOD choice with as many as 42% of SVOD subscribers taking only the service. In addition,16% took both Netflix and local player Stan, with 5% choosing to combine Foxtel Now, Netflix and Stan, and 1% opting for an Amazon Prime, Netflix and Stan combination.

One of the key stand out trends was that Australians’ use of broadcaster catch-up (BVOD), bucks the global trend. Comparing Australia to the UK, just 7.1% of streaming households view BVOD only in Australia, compared with 14% in the UK. Almost half of Australia households view SVOD without using BVOD services, much higher than the UK’s 21%. The difference is also stark when it comes to combining SVOD with BVOD with Australia’s 22.6% is just under half of the UK’s 50.5% of the audience.

The results suggest, said the Ampere Analysis study was that there is plenty of opportunity for Australian broadcasters to improve their content offering to appeal to streaming households looking to curate their entertainment selection. “It’s no surprise that Disney has chosen Australia and New Zealand as two of the first four international markets for its direct-to-consumer streaming launches,” said Ampere Analysis analyst and director Guy Bisson. “If they are to stop Netflix dominating, local broadcasters need to evolve their own streaming platforms in order to maintain market and competitive position, leveraging strengths around local production and potentially co-operating on joint services and aggregation and navigation as well as exploring hybrid (mixed subscription/advertising) streaming business models.”